OECD developed a set of anti-money laundering methods that covers manipulations with digital currencies as well as fiat currencies. Such measures include adequate verification of customers for transactions exceeding $1,000, sanctions for legal violations, and registering the subjects that provide crypto related services.
The measures were elaborated by the OECD, anti-money laundering task force (FATF-GAFI), on February 22-23. The original idea of the meeting was to come to the conclusion on the approval of the first guidelines for the adhering countries on combating laundering of digital currencies. The document must be approved by June 2019.
The focus of the OECD is put on the entities that manage bitcoin exchange platforms. The body requires in particular that the virtual asset service provider (VASP) must be authorized, or have a license or be registered in the jurisdictions where they were created. In the case of private individuals, monitoring should take place in the jurisdiction in which they are located. But at the same time the jurisdictions in which these VASPs operate, providing services to final customers, can in turn request registration or authorization procedures. More specifically, the document requires countries to provide the necessary legal or regulatory measures to prevent criminals from holding a significant interest or a management function in a VASP.
The special rules must be applied to those who provide services related to digital currencies and virtual payments. Besides, the OECD document also reports the activities of such companies under the supervisory authorities:
“Supervisors should have adequate powers to supervise or monitor and ensure compliance by VASPs with requirements to combat money laundering and terrorist financing including the authority to conduct inspections, compel the production of information, and impose sanctions. Supervisors should have powers to impose a range of disciplinary and financial sanctions, including the power to withdraw, restrict or suspend the VASP’s license or registration, where applicable”.
As for the sanctions, the document specifies:
“Countries should ensure that there is a range of effective, proportionate and dissuasive sanctions, whether criminal, civil or administrative, available to deal with VASPs that fail to comply with AML/CFT requirements”.
The sanctions should be applicable not only for VASPs, but also for their directors and managers, and it will be necessary to reach for the retention of data and past flows on the platforms. In addition, transactions exceeding one thousand dollars must be subject to adequate customer verification.
Even though virtual money and distributed ledger technology platforms became Italy’s primary national regulation strategy, the authorities remain cautious of laundering money and terrorist financing performed via crypto. The country also introduced some regulations in the field of distributed ledger technology.
Source text: https://it.coinidol.com/misure-contro-riciclaggio/