The rapid development of financial technologies has transformed the way funds are transferred and managed across borders. Virtual assets (VA) and virtual asset service providers (VASPs) present significant opportunities for innovation, but also new risks of misuse for money laundering, terrorist financing and proliferation financing. Recognising these risks, the FATF amended its Standards in 2019 to explicitly include VA and VASPs within the scope of its Recommendations.

The FATF Standards require countries to ensure that VASPs are subject to the same preventive measures as financial institutions, including licensing or registration, customer due diligence, record-keeping, suspicious transaction reporting and targeted financial sanctions. Particular attention is given to the implementation of the so-called “Travel Rule” (Recommendation 16), requiring VASPs to obtain, hold and transmit originator and beneficiary information in VA transfers.

New technologies also raise broader challenges, such as the need to apply a risk-based approach to digital identity systems, decentralised platforms, and emerging payment solutions. Supervisors and private sector actors are expected to understand the specific vulnerabilities of these tools, adapt their controls accordingly, and cooperate internationally given the inherently cross-border nature of VA activities.

MONEYVAL, in line with the FATF global network, has monitored the implementation of these requirements in its member jurisdictions, and has conducted horizontal exercises on the application of AML/CFT standards to VASPs and related technological innovations.

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