Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing
Published in September 2020, based on more than 100 case studies collected by members of the FATF Global Network, this report highlights the most important red-flag indicators that could suggest criminal behaviour.
This report gives Virtual Assets Service Providers (VASPs) and other compliance staff better information on what to look out for when they are monitoring virtual asset transactions.
Key indicators in this report focus on: -
- Technological features that increase anonymity - such as the use of peer-to-peer exchanges websites, mixing or tumbling services –
- Geographical risks - criminals can exploit countries with weak, or absent, national measures for virtual assets –
- Transaction patterns - that are irregular or which suggest criminal activity –
- Transaction size –
- Sender or recipient profiles - unusual behaviour can suggest criminal activity –
- Source of funds or wealth
A sector-specific summary version for VASPs can be found here http://www.fatf-gafi.org/media/fatf/documents/recommendations/Handout-Red-Flags-VA-VASP.pdf
Financial and non-financial sectors can be found here. http://www.fatf-gafi.org/media/fatf/documents/recommendations/Handout-Red-Flags-VA-Financial-Non-Financial.pdf