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Financial Action Task Force now requires exchanges to share information with each transfer


The Financial Action Task Force (FATF) put out a new statement that claims cryptocurrency exchanges and other “virtual asset services providers” must share customer data when sending money to different companies.

Exchanges must be more transparent

This news comes to us via CoinDesk, who note that the change is reminiscent of the FTAF’s February proposal. It states what should happen when exchanges send money. The platforms should:

“… obtain and hold required and accurate originator [sender] information and required beneficiary [receipient] information and submit the information to beneficiary institutions … if any. Further, countries should ensure that beneficiary institutions … obtain and hold required (not necessarily accurate) originator information and required and accurate beneficiary information …”

From now on, the 37 countries that abide by FATF laws must require that exchanges send out the following information with each trade:

  • (i) originator’s name (i.e., the sending customer);
  • (ii) originator’s account number where such an account is used to process the transaction (e.g., the VA wallet);
  • (iii) originator’s physical (geographical) address, or national identity number, or customer identification number (i.e., not a transaction number) that uniquely identifies the originator to the ordering institution, or date and place of birth;
  • (iv) beneficiary’s name; and
  • (v) beneficiary account number where such an account is used to process the transaction (e.g., the VA wallet).

The goal here is to fight terrorism and money laundering that, admittedly, is made much easier thanks to blockchain and cryptocurrency.

According to the official statement, the FATF notes that incorporating these changes is quite urgent:

“The threat of criminal and terrorist misuse of virtual assets is serious and urgent, and the FATF expects all countries to take prompt action to implement the FATF Recommendations in the context of virtual asset activities and service providers. The FATF will monitor implementation of the new requirements by countries and service providers and conduct a 12- month review in June 2020.”

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