Title Page
FINTECH NOTE
Virtual Assets and Anti-Money Laundering and Combating the Financing of Terrorism (1) Some Legal and Practical Considerations
Prepared by Nadine Schwarz, Ke Chen, Kristel Poh, Grace Jackson, Kathleen Kao, Francisca Fernando, and Maksym Markevych
October 2021
INTERNATIONAL MONETARY FUND
Copyright Page
©2021 International Monetary Fund
Cover Design: IMF Creative Services
Composition: The Grauel Group
Names: Schwarz, Nadine. | Chen, Ke (Financial Sector Expert). | Poh, Kristel. | Jackson, Grace. | Kao, Kathleen. | Fernando, Francisca. | Markevych, Maksym. | International Monetary Fund, publisher.
Title: Virtual assets and anti-money laundering and combating the financing of terrorism (1) : some legal and practical considerations / prepared by Nadine Schwarz, Ke Chen, Kristel Poh, Grace Jackson, Kathleen Kao, Francisca Fernando, and Maksym Markevych. Other titles: FinTech notes (International Monetary Fund).
Description: Washington, DC : International Monetary Fund, 2021. | October 2021. | Fin-tech notes | Includes bibliographical references.
Identifiers: ISBN 9781513593760 (paper)
Subjects: LCSH: Money laundering—Prevention—Law and legislation. | Terrorism—Prevention—Law and legislation. | Digital currency—Law and legislation.
Classification: LCC HV6768.S39 2021
DISCLAIMER: Fintech Notes offer practical advice from IMF staff members to policymakers on important issues. The views expressed in Fintech Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Contents
Abbreviations
Introduction
The Financial Integrity Risks Related to VAs
Key Concepts
Operational Aspects of an Effective AML/CFT System—Legal and Practical Considerations
Conclusion
Annex 1. FATF Standards Related to VAs and VASPs
Annex 2. Initiatives to Build LEA Capacity
Abbreviations
| AI | Artificial Intelligence |
| AML/CFT | Anti-Money Laundering/Combating the Financing of Terrorism |
| CBDC | Central Bank Digital Currency |
| CDD | Customer Due Diligence |
| DLT | Distributed Ledger Technology |
| DNFBPs | Designated Non-Financial Businesses and Professions |
| FATF | Financial Action Task Force |
| FIU | Financial Intelligence Unit |
| GSC | Global Stablecoin |
| ICO | Initial Coin Offering |
| IPO | Initial Public Offering |
| LEA | Law Enforcement Agency |
| ML | Money Laundering |
| MLA | Mutual Legal Assistance |
| MVTS | Money or Value Transfer Service(s) |
| PF | Financing of Proliferation of Weapons of Mass Destruction |
| TF | Terrorist Financing |
| VA | Virtual Asset |
| VASP | Virtual Asset Service Provider |