FATF Guidance On Virtual Currencies

The Financial Action Task Force (FATF) is little known among many but plays a powerful role in protecting the global financial system. Founded over 30 years ago by the members of the G7, the group was intended to bring the most advanced economies in the world together to explore and share how they were each addressing money laundering. Much has changed in financial services in the past 30 years but what was observed then - the globalization of financial services and ability to arbitrage regulatory regimes - has only accelerated. That leads us to FATF’s recently issued guidance regarding virtual currencies and the bottom line is the document makes explicit and public what has been communicated to members of the virtual currency industry for years, with particular emphasis on the "travel rule."