FATF Standards

Definition ∞ FATF Standards represent a comprehensive set of international recommendations issued by the Financial Action Task Force to combat money laundering, terrorist financing, and proliferation financing. These standards provide a framework for countries to implement effective legal, regulatory, and operational measures. They mandate specific obligations for financial institutions, including virtual asset service providers, regarding customer due diligence, suspicious transaction reporting, and record-keeping. Adherence to these guidelines is crucial for maintaining integrity within the global financial system.
Context ∞ FATF Standards are a dominant subject in crypto news, particularly concerning regulatory compliance and the global push for stricter oversight of digital assets. Recent reports consistently detail how various jurisdictions are working to implement the “Travel Rule” for virtual asset transfers, a key FATF recommendation. The ongoing debate centers on adapting these standards to the pseudonymous nature of some cryptocurrencies while preserving innovation, significantly influencing the operational landscape for crypto businesses worldwide.