[PDF] fatf recommendation 16 crypto

A. Objective

1. Recommendation 16 was developed with the objective of preventing terrorists and other criminals from having unfettered access to wire transfers for moving their funds, and for detecting such misuse when it occurs. Specifically, it aims to ensure that basic information on the originator and beneficiary of wire transfers is immediately available: ...

B. Scope

3. Recommendation 16 applies to cross-border wire transfers and domestic wire transfers , including serial payments, and cover payments. 4. Recommendation 16 is not intended to cover the following types of payments: (a) Any transfer that flows from a transaction carried out using a credit or debit or prepaid card for the purchase of goods or servic...

C. Cross-Border Qualifying Wire Transfers

6. Information accompanying all qualifying wire transfers should always contain: (a) the name of the originator; (b) the originator account number where such an account is used to process the transaction; (c) the originator’s address, or national identity number, or customer identification number, or date and place of birth; (d) the name of the ben...

D. Domestic Wire Transfers

9. Information accompanying domestic wire transfers should also include originator information as indicated for cross-border wire transfers, unless this information can be made available to the beneficiary financial institution and appropriate authorities by other means. In this latter case, the ordering financial institution need only include the ...

F. Money Or Value Transfer Service Operators

22. Money or value transfer service (MVTS) providers should be required to comply with all of the relevant requirements of Recommendation 16 in the countries in which they operate, directly or through their agents. In the case of a MVTS provider that controls both the ordering and the beneficiary side of a wire transfer, the MVTS provider: (a) shou...

View PDF Document


When did the FATF update its guidance for a risk-based approach?

In October 2021, the FATF updated its 2019 Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (VASPs). This updated guidance forms part of the FATF’s ongoing monitoring of the virtual assets and VASP sector.

What is FATF Recommendation 16?

The rule, formally known as FATF Recommendation #16, requires VASPs to communicate the information of the originators and beneficiaries of crypto transactions that exceed a certain threshold.

Do VASPs comply with FATF Recommendations?

Countries are expected to ensure that VASPs operating in their jurisdictions comply with the FATF’s Recommendations, where (according to paragraph 113 of the Draft Guidance for a Risk-based Approach to Virtual Assets and VASPs ), where transactions in excess of 1000 USD or Euro in either virtual or fiat currency are involved.

What is the FATF guidance for anti-money laundering & counter-terrorist financing?

This guidance will help countries and VASPs understand their anti-money laundering and counter-terrorist financing obligations, and effectively implement the FATF’s requirements as they apply to this sector. The guidance provides relevant examples and potential solutions to implementation obstacles.

View PDF Document




The New FATF Rules for Crypto Exchanges and Custodians

Recommendation 15 to further clarify how the FATF requirements should Crypto-to-Crypto and Fiat-to-Crypto transactions or ... FATF Recommendation 16.



Updated Guidance for a Risk-Based Approach for Virtual Assets and

01?/10?/2021 securely when conducting VA transfers (Recommendation 16) (the ... blockchain analytic companies means that there is no consensus on the ...



The FATF Recommendations

Interpretive Note to Recommendation 16;. (iii) there is a suspicion of money laundering or terrorist financing; or. (iv) the financial institution has 



Guidance for a Risk-Based Approach to Virtual Currencies

16. The FATF Recommendations require all jurisdictions to impose specified AML/CFT limits the blockchain's usefulness for monitoring transactions and ...



TARGETED UPDATE ON IMPLEMENTATION OF THE FATF

In total 98 jurisdictions responded to the FATF's March 2022 survey (33 FATF members and 65 FSRB jurisdictions16). FATF's Travel Rule (or. Recommendation 16) 



Second 12-Month Review of Revised FATF Standards - Virtual

01?/07?/2021 and updated Recommendation 15 (R.15). Virtual assets is the term the FATF uses to refer to crypto-assets and other digital assets.



FATF Guidance for a Risk-Based Approach to Virtual Assets and

01?/06?/2019 The FATF Recommendations are recognised as the global anti-money ... the FATF Secretariat 2 rue André Pascal 75775 Paris Cedex 16



UPDATE OF FATF GUIDANCE FOR A RISK-BASED APPROACH

conducting VA transfers (Recommendation 16) (the 'travel rule'). a blockchain-based asset that is defined as a traditional financial asset would likely ...



VIRTUAL ASSETS – DRAFT FATF REPORT TO G20 ON SO

Virtual assets is the term the FATF uses to refer to crypto-assets and subject to additional AML/CFT measures under Recommendation 16 of the FATF.



Guidance for a Risk-Based Approach for Money or Value Transfer

Recommendation 16; iii) there is a suspicion of money laundering or terrorist financing; iv) the financial institution has doubts about the veracity or