FATF updates guidance on risk-based approach to VAs and VASPs

FATF is updating its guidance on the risk-based approach to virtual assets (VAs) and virtual asset service providers (VASPs).

The guidance is updated in six key areas and amendments seek to:

• clarify the definitions of VA and VASP to make clear that all relevant financial assets are covered by the FATF Standards;
• provide guidance on how the FATF Standards apply to so-called stablecoins;
• provide additional guidance on the risks and potential risk mitigants for peer-to-peer transactions;
• provide updated guidance on the licensing and registration of VASPs;
• provide additional guidance for the public and private sectors on the implementation of the ‘travel rule’; and
• include Principles of Information-Sharing and Co-operation Amongst VASP Supervisors. The guidance has also been updated to reflect the passage of time and the publication of other relevant FATF reports.

FATF is consulting private sector stakeholders before finalising the revisions to the guidance. The consultation closes on 20 April 2021.