Title Page
FINTECH NOTE
Virtual Assets and Anti-Money Laundering and Combating the Financing of Terrorism (2)
Effective Anti-Money Laundering and Combating the Financing of Terrorism Regulatory and Supervisory Framework—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 (2): effective anti-money laundering and combating the financing of terrorism regulatory and supervisory framework—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 9781513593821 (paper)
Subjects: LCSH: Money laundering—Prevention—Law and legislation. | Terrorism—Prevention—Law and legislation. | Digital currency—Law and legislation.
Classification: LCC HV6768.S393 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
Effective Regulatory and Supervisory AML/CFT System—Legal and Practical Considerations
Conclusion
Annex 1. FATF Standards Related to VAs and VASPs
Annex 2. ML/TF Red Flag Indicators
Abbreviations
| AI | Artificial Intelligence |
| AML/CFT | Anti-Money Laundering/Combating the Financing of Terrorism |
| CDD | Customer Due Diligence |
| Digital ID | Digital Identification |
| DLT | Distributed Ledger Technology |
| DNFBPs | Designated Non-Financial Businesses and Professions |
| FATF | Financial Action Task Force |
| FI | Financial Institution |
| FIU | Financial Intelligence Unit |
| ML | Money Laundering |
| PEP | Politically Exposed Person |
| PF | Financing of Proliferation of Weapons of Mass Destruction |
| STR | Suspicious Transaction Report |
| TF | Terrorist Financing |
| UNSC | United Nations Security Council |
| VA | Virtual Asset |
| VASP | Virtual Asset Service Provider |