What is FATF?
FATF is the Financial Action Task Force and is an intergovernmental organization of 37 jurisdictions founded in 1989. The FATF plans to hold annual checks to confirm countries are enforcing AML and terrorist rules concerning digital assets.
What’s their plan of action?
The FATF task force used to run on a ten-year cycle of mutual evaluations, but will now require countries protected by the FATF to display annually that they comply with Anti-Money Laundering(AML).
What if Countries don’t comply?
If countries chose to not follow these guidelines they will be added to a ‘grey list’ of countries “under increasing monitoring”. The ‘grey list’ includes 23 countries, including Cambodia, Haiti, and Yemen. Countries that are blacklisted are not catastrophic but will need enhanced due diligence from global institutions such as Truth Technologies and increased Know Your Client (KYC).
What if Companies don’t comply?
FATF can call on international financial institutions to pause their involvement in, and association with, offending countries and drive governments to apply financial sanctions if the country is downgraded from the “grey list” to the “black list” or a “high-risk” entity. If companies decide to still do business with offending countries then they can face heavy fines.
Anti-Money Laundering Technology
Truth Technologies‘ provides software that helps prevent Anti-Money Laundering. Contact us today for a free demo and see how we can help identify at-risk countries and which organizations or individuals may be associated with those countries.