The Financial Action Task Force (FATF) is reviewing its recommendations, in order to adapt to evolving payment models and standards. Next in line is Recommendation 16, also known as the Travel Rule, requiring exchange of information in wire transfers for anti-money laundering purposes, with updates made in 2019 to address cryptocurrency use. The Travel Rule aims to improve the traceability of transactions, with the intention of preventing and detecting money laundering, terrorist financing and other illicit activities. The regulation applies to both cross-border and domestic wire transfers.

The review initiative, of which the current consultation forms part, aims to maintain technology-neutrality, ensuring consistent rules for similar activities. The revisions seek to enhance cross-border payments, making them user-friendlier and more transparent while prioritising safety.

Through the current consultation, the FATF invites stakeholders, especially from the payment services industry, to share their feedback on the proposed changes. Key consultation topics include transparency requirements, beneficiary information, and payment chain definitions. The consultation is open until 3rd of May 2024.

Want to hear more about ML risks in cross-border relations, state-of-the-art KYC and KYD strategies and how to navigate through the waters of multi-jurisdictional compliance and risk management? Have a chat with Nikolas Lotz (nikolas@chevron.group), Lawrence Marchese (lawrence@chevron.group), Kurt Laferla (kurt@chevron.group) and Thees Buschmann (thees@chevron.group) from Chevron Group.

Quelle: Chevron Consultants e.K.