The FATF published their November Business Bulletin. It provides a brief update on the key outcomes from the first meeting under the Chinese Presidency of the FATF on 16-18 October 2019.
The FATF states that it will continue to examine stablecoins’ characteristics and risks, and consider further clarifications on how the FATF standards apply to stablecoin and their service providers, as well as whether further updates are necessary.
The FATF is also developing guidance to clarify how digital identity (digital ID) systems can be used for customer due diligence (CDD). The Bulletin states that a priority under the Chinese Presidency of the FATF is to identify challenges and weaknesses in AML/CFT supervision. The FATF approved the programme of outreach to national supervisors to explore ways of making supervision more effective. An objective of this effort is to encourage national supervisors and regulated entities to focus more on outcomes than processes and to promote risk-based approach to supervision. The Chinese government will host the first Supervisors’ Forum in November 2019.