Front Matter
Author: Nadine Schwarz and Ke Chen1
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

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

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
Author: Nadine Schwarz, Ms. Kristel Poh, Ms. Ke Chen, Ms. Grace Jackson, Kathleen Kao, Ms. Francisca Fernando, and Maksym Markevych