FATF: US is not Complying With Our Crypto Recommendations
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April 2, 2020
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The Financial Action Task Force (FATF) has said the United States is not fully complying with its recommendations regarding cryptocurrencies.

According to the agency's latest report, the US still must address some "minor deficiencies".

For instance, US-registered money services businesses (MSBs) only keep detailed records for transactions which involve $3,000 or more, while the FATF recommends a lower threshold - $1,000.

In addition, the FATF also said the US does not specifically identify "higher risk" virtual asset service providers (VASPs) as they are largely covered by the broader MSB regime, according to the FATF:

"Therefore, it is not entirely clear whether the current approach is sufficiently risk focused, especially since only 30% of all registered CVC [convertible virtual currencies] providers have been inspected since 2014."

As a result of these deficiencies, "the US remains rated as largely compliant" with "recommendation 15".

The FATF ranks countries according to four levels:

  • Compliant.
  • Largely compliant.
  • Partially compliant.
  • Non-compliant.

The recommendation 15, which came into force in June, provides guidelines for cryptocurrency companies "to prevent the misuse of virtual assets for money laundering and terrorist financing and the financing of proliferation."

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