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ARTICLE · 02 OCTOBER 2020

Financial Action Task Force Publishes Report On Red Flag Indicators Associated With Virtual Assets

McCarthy Tétrault
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On September 14, 2020, the Financial Action Task Force ("FATF") published its report on red flag indicators associated with virtual assets ("VAs")", following up on its guidance last year on virtual assets.

CanadaFinance and Banking
TechLex Blog
TechLex Blog
Ana Badour
Ana Badour
Shauvik Shah
Shauvik Shah
Daanish Pasricha
Daanish Pasricha
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On September 14, 2020, the Financial Action Task Force1 ("FATF") published its report (the "Red Flag Report") on red flag indicators associated with virtual assets ("VAs")", following up on its guidance last year on virtual assets. The FATF defines VAs as digital representations of value that "can be digitally traded, or transferred, and can be used for payment or investment purposes."

In Canada, businesses dealing in virtual currency are now subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act as money services businesses ("Virtual Currency MSBs"). Both Virtual Currency MSBs and other reporting entities engaging in virtual currency transactions will find the Red Flag Report instructive in refining aspects of their anti-money laundering/counter-terrorist financing compliance program relating to dealing with virtual asset transactions.

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