What is FATF? The meaning of FATF in anti money laundering and kyc
What is FATF?
FATF is an abbreviation of the Financial Action Task Force and is the inter-governmental body that sets international standards to prevent money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.
Formed by the 1989 G7 Summit in Paris, FATF was initially formed to combat the growing problem of money laundering. Along with the increase in the members starting from 16 and now to 39 by 2021, FATF also broadens the action to combat terrorism financing. 39 full members comprise 37 member jurisdictions and 2 regional organizations.
Financial Action Task Force (FATF) which sets international standards to fight against money laundering and terrorist financing has published a second 12-month review of revised FATF Standards on virtual asset and its providers(VASPs). As FATF puts importance on setting global standards to prevent money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, it signifies in the report how the Standards has been revised for the application of virtual assets and VASPs.
The report emphasizes the rapid growth in the virtual asset and virtual asset service providers (VASPs). It mentions a large increase in the usage of virtual assets to collect ransomware payments and to commit and launder the proceeds of fraud, and it is more to increase in 2021. The specific trait of virtual assets - anonymity - leads to the core issue of usage. This draws the importance of AML (Anti-Money Laundering) and CFT (Counter-Terrorism Financing) requirements on virtual assets and VASPs. As there is the uneven global implementation of the revised Standards, meeting the compliant is an ongoing topic.
Anti money laundering and kyc
FATF places anti-money laundering(AML) and counter-terrorism financing(CFT) requirements on virtual assets and virtual asset service providers(VASPs). Responding to identified money laundering and terrorist financing (ML/TF) risks is at the core of the FATF’s work.
The rise in digitalization has a great impact on AML and CFT as they can interact with virtual assets. As you might have guessed on the correlation with these two, the virtual asset has a distinct characteristic, anonymity. This is where the KYC and AML come to protect businesses from fraud, money laundering, identity theft, and other cybercrimes. Digital-related fraud is increasing globally. In the US alone, the financial institutions have been charged USD 24 billion as fines in the past decade, and in 2019, 58 anti-money laundering penalties amounted to around USD 8 billion. (*Identity Verification Market-Global Forecast To 2025 by MarketsandMarkets)
Protect your business from the potential risks involved in transactions using virtual assets. Small and medium-sized businesses face more chances of digital-related frauds because of resource, personnel, and budget limitation. However, regardless of the business size, all companies need proper protection. Make your business safe from any potential risks including unauthorized access.
Kyc aml platform, ARGOS Identity
In order to make your business safe from being attacked by cyber-related crimes, this is why you are in need of customer protection using ARGOS. ARGOS is an online service aiming to identify your customers(KYC) and protect your business from any kind of money laundering(AML). ARGOS got you covered from all these hassles.
Secure your business with ARGOS’s online solution, a seamless KYC(Know Your Customer) and AML(Anti-Money Laundering) service. Find out more about how ARGOS can support your business with high accuracy, low operation cost, and excellent customer experience. Please contact us for detailed service, products, and price.