“Due to technological evolution, changes in the market, including blockchain, and also the existence of new service providers, it is necessary to update this recommendation to ensure that we are up to date, but we also have to be technologically neutral,” said De Anda, who will chair this Group. for the next two years according to the Ministry of Finance and Public Credit (SHCP).
FATF is an international organization made up of 200 demarcations and countries, dedicated to establishing international standards, promoting and evaluating the implementation of legal, regulatory and operational measures to combat money laundering, terrorist financing, proliferation of weapons of mass destruction and other threats related to the integrity of the international financial system.
He explained that when Recommendation 16 was established, the credit card market was different and smaller than it is today, so the update goes beyond electronic transfers.
As part of this update, FATF is required to revise the standard to clarify the roles and responsibilities of the different actors involved in the payment chain. It also aims to make compliance processes more transparent, efficient and effective.
“We must ensure that this recommendation is up to date for those who are surfing the web, and therefore this is reflected in regulations for countries. There are new technologies, but there are the same risks and the same rules,” said De Anda.
He stressed that in this exercise, FATF must ensure that there is alignment between the information of the beneficiary (the person who sends the money) and the information that the person who receives the money must verify about the account holder.
“These changes are major because when they are established, the FATF explains that they have to be adapted, mainly, by all countries, and there are sectors that were exempt, or are currently exempt from these requirements. There are new players such as Paypal, so we are bringing in regulation; it is a major task because it is very technical and generates the need to have a very good dialogue with the private sector and the FATF,” said the official.
He explained that for this update, a consultation period of dialogue with international organizations and the private sector was opened, which took place over six months and closed in May. With all the information, FATF began to work on making reform proposals for this recommendation, and will have to call for a second public consultation. He highlighted that among the main challenges of these changes is closing the door to criminals, without stifling the entry of resources that are legal.
