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ARTICLE · 16 OCTOBER 2020

Global AML Watchdog Issues Virtual Assets Red Flag Indicators

The Financial Action Task Force (FATF), a global intergovernmental organization that sets standards and policies for anti-money laundering and counter-terrorist financing (AML/CFT)

CanadaGovernment, Public Sector

The Financial Action Task Force (FATF), a global intergovernmental organization that sets standards and policies for anti-money laundering and counter-terrorist financing (AML/CFT) recently issued a report on Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing (the Report). According to the FATF, a virtual asset is a digital representation of value that can be digitally traded, transferred or used for payments, thanks to the benefit it offers, such as speed and efficiency. The Report allows affected stakeholders to use the proposed red flag indicators of money laundering and terrorist financing activities (the Indicators) as guardrails against the criminal use of virtual assets. The Indicators are based on the FATF's analysis of over 100 case studies from 2017 to 2020.

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