At the FATF’s plenary meeting, the organization announced the need to enact the so-called “travel rule” (Travel Rule) in order to close existing loopholes not included in regulations.
The Travel Rule requires financial institutions to transfer customer information such as names, addresses, and account details about senders and recipients when processing crypto transactions.
However, the survey conducted by FATF revealed that only 29 of the 98 jurisdictions had met the necessary criteria to enact the rule by March 2022.
Japan was the only country to have followed the Travel Rule since June 1. The organization therefore urges members to take immediate action to protect against AML/CFT.
