United States Not Focusing Enough on Digital Asset Financial Risk, As Per FATF Report

The Financial Action Task Force has reexamined the United States on its acquiescence with comprehensive AML and CFT regulations. As per a recently published report, the United States is only ‘largely compliant’ with Financial Action Task Force regulations on digital assets and virtual currencies.

The valuation measured the degree of compliance of the national legislation to suggestions issued by the Financial Action Task Force, which is an international regulatory standard figure. It is to be noted that one of the most deliberated subjects in the report is ‘Recommendation 15’, which deals precisely with cryptocurrencies and digital assets.

The Financial Action Task Force rating of the United States on this subject has not undergone any alteration since the preceding assessment in 2016. Nevertheless, the task force’s own guidelines for virtual currencies were corrected remarkably in October 2019, in what is generally known as the FATF Travel Rule.

Furthermore, the agency praised the amplified cognizance of the risks shown by United States regulators, mentioning the creation of numerous task forces and reports like the “2018 National Money Laundering Risk Assessment.”