FATF flags threats from virtual assets

The Financial Action Task Force (FATF) has called for urgent global measures to address growing risks of money laundering (ML), terror financing (TF), and proliferation financing (PF) linked to virtual assets (VAs) and virtual asset service providers (VASPs). This call comes as Pakistan continues its accelerated push towards regulating digital currencies. While the country has conducted risk assessments for VAs and VASPs, it has not explicitly banned their use. Legislation is currently underway for registering or licensing VASPs under anti-money laundering and counter-terror financing frameworks, including compliance with the so-called Travel Rule. In its latest report on the implementation of FATF standards related to VAs and VASPs, the Paris-based watchdog urged countries to identify and assess associated ML/TF/PF risks and implement mitigation strategies without delay.