A virtual asset is a representation of currency in some environment or situation. In this context, currency can be defined as either a medium of exchange or a property that has value in a specific environment, such as a video game or a financial trading simulation exercise.

A virtual asset is a representation of currency. In this context, currency can be defined as either a medium of exchange or a property that has value in a specific environment, such as a video game or a financial trading simulation exercise. Bitcoin is an example of a virtual currency.

In FATF, DNFBP stands for “Designated Non-Financial Business and Professions”(DNFBP). Certain types of “non-financial” businesses have been identified as being susceptible to money laundering and terrorist financing due to the nature of their business and the transactions with activity that they may conduct.

In FATF, the original FATF Forty Recommendations were drawn up in 1990 as an initiative to combat the misuse of financial systems by persons laundering drug money. In 1996 the Recommendations were revised for the first time to reflect evolving money laundering typologies.

The FATF blacklist has been issued by the FATF since 2000 and lists countries which FATF judges to be non-cooperative in the global fight against money laundering and terrorist financing, calling them “Non-Cooperative Countries or Territories” (NCCTs).

FATF grey lists a country which it considers as a safe haven for terror funding and money laundering. It is a warning to the country to tackle the issues. If the country is not actively tackling money laundering or terror funding, it is then blacklisted.

FATF has prepared and issued two types of lists:
(A) Black List: Countries knowns as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist.
(B) FATF grey lists: a country which it considers as a safe haven for terror funding and money laundering.

In “guidance for a risk-based approach to virtual assets and virtual asset service providers” Regarding virtual asset service providers supervision, the Guidance makes clear that only competent authorities can act as VASP supervisory or monitoring bodies, and not self-regulatory bodies.

Guidance for a risk-based approach to virtual assets and virtual asset service providers makes clear that VASPS, and other entities involved in VA activities, need to apply all the preventive measures described in FATF Recommendations 10 to 21.

In June 2014, the FATF issued Virtual Currencies, Key Definitions and Potential AML/CFT Risks in response to the emergence of virtual currencies and their associated payment mechanisms for providing new methods of transmitting value over the Internet.

In June 2015, the FATF issued the Guidance for a Risk-Based Approach to Virtual Currencies (the 2015 VC Guidance) as part of a staged approach to addressing the money laundering and terrorist financing (ML/TF) risks associated with virtual currency payment products and services.

The 2015 VC Guidance focuses on the points where virtual currency activities intersect with and provide gateways to and form (i.e., the on and off-ramps to) the traditional regulated financial system, in particular convertible virtual currency exchangers.

In October 2018, the FATF adopted follwoing two new Glossary definitions:-
(A) virtual asset (VA) and
(B) the virtual asset service provider (VASP) and also updated Recommendation 15

The FATF Recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. The FATF calls upon all countries to effectively implement these measures in their national systems.

The FATF Recommendations make clear that countries should apply a risk-based approach to ensure that measures to prevent or mitigate ML/TF risks are commensurate with the risks identified in their respective jurisdictions. Under the risk-based approach, countries should strengthen the requirements for higher-risk situations or activities involving VAs.

FATF Recommendation 1 requires countries to identify, understand, and assess their ML/TF risks and to take action aimed at effectively mitigating those risks.

The FATF Recommendations 2 requires national co-operation and co-ordination with respect to AML/CFT policies, including in the VASP sector, and is therefore indirectly applicable to countries s in the context of regulating and supervising covered VA activities.

Countries should consider putting in place mechanisms, such as interagency working groups or task forces, to enable policymakers, regulators, supervisors, the financial intelligence unit (FIU), and law enforcement authorities to co-operate with one another and any other relevant competent authorities in order to develop and implement effective policies, regulations, and other measures to address the ML/TF risks associated with covered VA activities and VASPs.

National co-operation and co-ordination are particularly important in the context of VAs, in part due to their highly-mobile and crossborder nature and because of the manner in which covered or regulated VA activities may implicate multiple regulatory bodies (e.g., those competent authorities regulating money transmission, securities, and commodities or derivatives activities).

For the purposes of implementing Recommendation 3, the ML offence should extend to any type of property, regardless of its value, that directly represents the proceeds of crime, including in the context of VAs.

When proving that property is the proceeds of crime, it should not be necessary that a person be convicted of a predicate offence, including in the case of VA-related proceeds. countries should therefore extend their applicable ML offence measures to proceeds of crime involving VAs.

FATF Recommendations 4 can be explained as the confiscation and provisional measures relating to
(A) property laundered
(B) proceeds from, or instrumentalities used in or intended for use in money laundering or predicate offences
(c) property that is used in, or intended or allocated for use in, the financing of terrorism, terrorist acts, or terrorist organisations
(D) or property of corresponding value also applies to VAs

According to FATF Recommendations 4, To extend the duration of the freeze or to request the confiscation of assets, LEAs should obtain a court order.

According to FATF Recommendations 5, the Terror financing offences described in Recommendation 5 should extend to “any funds or other assets,” including VAs, whether from a legitimate or illegitimate source

According to FATF Recommendations 33, The statistics that countries maintain should include statistics on the suspicious transaction reports (STRs) that the competent authorities receive and disseminate as well as on the property that the competent authorities freeze, seize, and confiscate.

In FATF Recommendations, According to Recommendation 12 “Politically exposed persons”. A politically exposed person (PEP) is an individual who is or has been entrusted with a prominent function. Many PEPs hold positions that can be abused for the purpose of laundering illicit funds or other predicate offences such as corruption or bribery.

FATF Recommendation 13 requires additional measures to be applied to cross-border correspondent banking relationships, in addition to performing the CDD and enhanced due diligence (EDD) measures in FATF Recommendation 10 for high-risk customers.

In FATF Recommendations, according to Recommendation 14 “Money or value transfer services”, countries should take measures to ensure that natural or legal persons that provide money or value transfer services (MVTS) are licensed or registered, and subject to effective systems for monitoring and ensuring compliance with the relevant measures called for in the FATF Recommendations.

In FATF Recommendations, Recommendation 16 applies to both cross-border and domestic wire transfers. The objective of the recommendation, as set forth in the FATF Recommendations, is to prevent “terrorists and other criminals from having unfettered access to wire transfers for moving their funds, and for detecting such misuse when it occurs”.

According to the FATF, Over-the-counter (OTC) refers to the process of how securities are traded for companies not listed on a formal exchange. Popular examples include pain relievers like acetaminophen (Tylenol) and ibuprofen (Advil, Motrin), cough suppressants such as dextromethorphan (Robitussin) and antihistamines like loratadine (Claritin 24H). These drugs are usually located on shelves in pharmacies, grocery stores, and even in gas stations.