Virtual Currencies: New Guidance from FATF

FATF have just released guidance on how countries should deal with virtual currencies. This report is significant as it acknowledges the growth of alternative forms of digital payments and the risks it imposes.

However, what is also significant is that it urges member countries to update their AML/CTF regulations to incorporate the risks to both the Bitcoin exchanges and the financial institutions that deal with them.  Banks need to go back to their current AML policies and update them accordingly.

The full report is a lengthy one that includes appendices on what virtual currencies are and how they work as a payments mechanism.