The FATF wants its member countries to enforce AML and terrorist financing rules (TFC) on crypto providers.
The BSP has reminded banks anew to make sure their institutions will not be used for money laundering.
Are the recent “dismissiveness” about crypto by our regulators is really because the Philippines is still in the FATF Gray list?
This initiative is meant to implement the firm’s compliance with the ‘Travel Rule,’ a government policy that requires customers to divulge personally identifiable information when their transactions exceed a certain threshold.
In cases where NFTs are used in such a way that falls under FATF standards, the body insists that it should still be regulated using a “functional approach.”
Even if the design of DeFi lets transactions happen without intermediaries, anyone behind the DApp would still be responsible for AML checks.
The FATF document consists of six red flag indicators that may indicate suspicious activities or attempts to evade law enforcement.
BitPinas’ introductory article about the Financial Action Task Force or FATF.
The Travel Rule states that countries must ensure that “…beneficiary VASPs (Virtual Asset Service Providers) must obtain and hold required originator information and required and accurate beneficiary information on virtual asset transfers and make it available on request to appropriate authorities.”