The Financial Action Task Force (FATF) has published a Report on money laundering/terrorist financing (ML/TF) red flag indicators associated with virtual assets. The aim is to assist reporting entities, including financial institutions, designated non-financial businesses and professions and VASPs; furthermore, it should also facilitate reporting entities’ application of a risk-based approach to their Customer Due Diligence requirements.
The identified Red Flag Indicators relate to the following areas:
2. Transaction patterns;
4. Senders or Recipients;
5. Source of Funds or Wealth;
6. Geographical risks.