VIRTUALASSETSANDVIRTUALASSETSERVICEPROVIDERSUNEtscoverphotoGettyimagesTheFinancialActionTaskForce(FATF)isanindependentinter-governmentalbodythatdevelopsandpromotespoliciestoprotecttheglobalfinancialsystemagainstmoneylaundering,terroristfinancingandthefinancingofproliferationofweaponsofmassdestruction.TheFATFRecommendationsarerecognisedastheglobalanti-moneylaundering(AML)andcounter-terroristfinancing(CFT)standard.FormoreinformationabouttheFATF,pleasevisitThisdocumentand/oranymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea.eferenceFATFTargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPs,FATF,Paris,/publications/fatfrecommendations/documents/targeted-update-virtual-assets-vasps.html?2022FATF/OECD.Allrightsreserved.Noreproductionortranslationofthispublicationmaybemadewithoutpriorwrittenpermission.Applicationsforsuchpermission,forallorpartofthispublication,shouldbemadetotheFATFSecretariat,2rueAndréPascal75775ParisCedex16,France(fax:+33144306137ore-mail:tactfatfgafiorgleofContentsKeyFindings2NextSteps 3Introduction 5SECTIONONE:StateofPublicSectorImplementationofFATFStandardsforVAs/VASPs 7OverallStatusofRecommendation15Implementation 7SECTIONTWO:StateofImplementationofFATS’sTravelRule 10Overallstatusofimplementation&enforcement 10CountryApproachestoCommonImplementationIssues 12PrivateSectorApproachesinImplementingtheTravelRule 17SECTIONTHREE:UpdatesonMarketDevelopmentsandEmergingRisks 19DecentralisedFinance(DeFi) 19Non-FungibleTokens(NFTs) 20OtherMarketDevelopments(P2P,stablecoinsetc.) 21EmergingRisks 21SECTIONFOUR:NextSteps 23AnnexA.FurtherInformationtoSupportPublicReport 25MarketDevelopments 25TravelRuleSolutionConsiderations 25etedUpdateonImplementationoftheFATFStandardsonVirtualAssetsVASPsFATFOECD11.IthasnowbeenthreeyearssincetheFinancialActionTaskForce(FATF)extendeditsanti-moneylaunderingandcounter-terroristfinancing(AML/CFT)StandardstocialactivitiesinvolvingVirtualAssetsVAsandVirtualAssetServiceProviders(VASPs),torespondtothethreatofcriminalandterroristmisuse1.Sincethen,FATFhaspublishedtwoglobalreviewsofimplementationoftheFATFStandardsonVAsandVASPs3,andinOctober2021publishedUpdatedGuidancetohelpjurisdictionsandVASPseffectivelyimplementtheserequirements4.Thisreportprovidesathirdtargetedreviewofimplementation,withafocusonFATF’sTravelRule,whichrequirestheprivatesectortoobtain/exchangebeneficiaryandoriginatorinformationwithVAtransfers5.ItalsoprovidesabriefupdateongeneralimplementationofFATF’sRecommendation15anditsInterpretativeNote(R.15/INR.15),aswellasemergingrisksandmarketdevelopmentsthatFATFcontinuestomonitor,suchasDecentralisedFinance(DeFi),Non-FungibleTokens(NFTs),andunhostedwallets.eportfindsthat.ThevastmajorityofjurisdictionshavenotyetfullyimplementedFATF’sR.15/IN.15requirements(whichsettheglobalAML/CFTStandardsforVAsandVASPs).Ofthe53jurisdictionsthathavebeenassessedbytheFATF’sksinceJunethemajoritystillrequiremajorormoderateimprovementsonR.15,withimprovementsparticularlyneededonassessingML/TFrisks,andtheapplicationofAML/CFTpreventativemeasures..Overthelastyear,jurisdictionshavemadeonlylimitedprogressintransactions)7.AsofMarch2022,while29outof98respondingjurisdictionsreportedhavingpassedTravelRulelegislation,only11jurisdictionshavestartedenforcementandsupervisorymeasures.Whilearoundaquarterofrespondingjurisdictionsarenowintheprocessofpassingtherelevantlegislation,aroundone-third(36outof98)havenotyetstartedintroducing1TheFATFStandards:FATFRecommendations(Amendedin2022).212-MonthReviewofRevisedFATFStandardsonVirtualAssetsandVASPs.2020.3Second12-MonthReviewoftheRevisedFATFStandardsonVirtualAssetsandVASPs.2021.4FATFGuidanceforaRisk-BasedApproachtoVirtualAssetsandVirtualAssetServiceProviders(Initiallypublishedin2019andupdatedin2021).5The‘travelrule’isakeyAML/CFTmeasure,whichmandatesthatVASPsobtain,holdandnformationabouttheoriginatorsandbeneficiariesofvirtualassettransfersasperparagraph7ofFATF’sInterpretativeNoteto15).ThisenablesfinancialinstitutionsandVASPstoconductsanctionsscreeningandtodetectsuspicioustransactions.6FATF’sGlobalNetworkcomprisesofover200jurisdictionsthathavecommittedtoimplementtheFATF’sAML/CFTStandards.TheFATFsTravelRuleappliestoallVAtransfers,basedonthecross-bordernatureofVAactivitiesandVASPoperations(seepara180ofFATF’sUpdatedGuidance).TargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPs3FATFOECD2theTravelRule8.ThisgapleavesVAsandVASPsvulnerabletomisuse,anddemonstratestheurgentneedforjurisdictionstoaccelerateimplementationandenforcement..TheprivatesectorhasmadeprogressoverthelastyearinfacilitatingTravelRuleimplementation.Technologicalsolutionsarecurrentlyavailabletosupportcompliance,albeitwithsomelimitations,andTravelRuleprovidersNevertheless,theprivatesectorneedstofurtherstrengtheninteroperabilitybetweensolutions,andtoensurefullcompliancewiththeFATFStandards,toenableglobalimplementation.theprivatesectorhaveimplementedtheTravelRuletheyhavefoundchallengestoimplementation,especiallybetweenjurisdictionsthatregulateVAsandVASPs,andthosethatthatdonot(the“sunriseissue”).Furthermore,jurisdictionsaretakingdifferentapproachestosomeextenttoTravelRulerequirements,asallowedforundertheFATFStandards(i.e.approachestounhostedwallets,dataprotectionrules,andthresholds).Thishighlightstheneedforjurisdictionstocontinuetocoordinateoncommonaccommodatefornuancesacrossjurisdictions..SinceJune2021,DeFiandNFTsmarketshavecontinuedtogrow.FATF’sntralisedcurrentlycanbeamarketingtermratherthanatechnicaldescription,andthateveninso-calleddecentralizedarrangements,oftentherecontinuestobepersonsandcentralizedaspectsthatmaybesubjecttoAML/CFTobligations..TherecontinuestobeasignificantthreatofransomwareactorsmisusingVAstofacilitatepayments,andransomwarecybercriminalscontinuetorelyonasmallgroupofnon-compliantVASPsandprivacycoinstomovefunds.3.Basedonthefindingsofthisreport,FATFhasidentifiedthefollowingprioritiesforactionbytheVirtualAssetContactGroup(VACG),membersoftheGlobalNetwork,theprivatesectorcewithRINRi.BothFATFandFATF-styleregionalbody(FSRB)membersshouldacceleratecompliancewithFATF’sR.15/INR.15,withapriorityfocusonassessingML/TFrisksofVAandVASPs,andtheapplicationofAML/CFTmeasurestoenforcement.avelRuleii.CountriesthathavenotintroducedTravelRulelegislationshoulddosoassoonaspossible,andFATFjurisdictionsshouldleadbyexamplebypromotingimplementation,andbysharingexperiencesandgoodpractices.TFGlobalNetworkdidnotrespondtothesurveyanditisassumedthatthosejurisdictionshavenotmadeprogressinTravelRuleimplementation.etedUpdateonImplementationoftheFATFStandardsonVirtualAssetsVASPsFATFOECD1Asmentionedabove,therearenowvarioustechnologicalsolutionsavailabletosupportthisimplementationinpractice,despitefurtheradvancementsneeded,andrapidimplementationbyjurisdictionswillincentivizeprogressfurther.iii.TheFATFanditsVACGshouldcontinuetopromotecross-borderimplementationoftheFATF’sTravelRule,byfacilitatingdiscussionsacrosssandshouldreviewimplementationprogressagainbyJune202310.iv.AspartoftheirbroadereffortstocomplywiththeFATFstandards,theprivatesectorshouldstrengtheneffortstofacilitateinteroperabilityacrossTravelRuletechnologicalsolutions,andensureflexibilitytoaccommodatefornuancesindomesticrequirements.MarketDevelopmentsv.TheFATFanditsVACGshouldcontinuetomonitormarkettrendsformaterialdevelopmentsthatmaynecessitatefurtherFATFwork,includinghowtheFATFStandardsapplytoDeFiandNFTs,andengagewithmembersdtheprivatesectortounderstandrisksmitigationmeasuresandcountryrepaymentsandrelatedMLthroughVAsandVASPs.9Thismayincludedialogueoncross-borderissuessuchas1)monitoringandriskmitigationmeasuresinvolvingtransactionbetweenVASPsandunhostedwallets;2)interoperabilityofTravelRuletechnologicalsolutions;3)deminimisthresholds;and4)dataprotectionrules.Withtheintentionofpublishingthemainfindings.TargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPs5FATFOECD24.InOctober2018,FATFupdateditsStandardstoextendAML/CFTrequirementstotualAssetServiceProvidersVASPsInJuneFATFadoptedanInterpretiveNotetoRecommendation15(INR.15)toclarifyhowtheFATFrequirementsapplyinrelationtoVAsandVASPs.Sincethen,FATFhasconductedtworeviewstodeterminehowjurisdictionsandprivatesectorareimplementingtherevisedFATFStandardsforVAsandVASPs.ThesereviewsfoundthatbothpublicandprivatesectorhadmadeprogressinimplementingtherevisedainedtoreachglobalimplementationThesecond12-monthreviewinJune2021thereforecommittedFATFtofocusonimplementationoftheFATFStandardsonVAsandVASPs,includingacceleratingprivatesectorimplementationoftheTravelRuleasapriority.Sincethen,FATFhaspublishedanUpdatedGuidanceforaRisk-BasedApproachtoVAsandVASPs(October2021),whichprovidesclarificationstohelpjurisdictionsandVASPsenttheFATFsRINRrequirements5.ThisreportisathirdtargetedupdateonglobalimplementationoftheFATF’sStandardsonVAsandVASPs.Inparticular,thisreportismoretargetedthanthepreviousreviewsasitfocusesonimplementationofFATF’sTravelRule.ThisreportfocusesonFATF’sTravelRuleasitisanimportantrequirementtoenableVASPstoimplementtheirtargetedfinancialsanctionandtransactionmonitoringrequirements,andpreviousFATFanalysisshowsthatimplementationofthisrequirementhasbeenparticularlylagging.Inaddition,thisreportalsoprovidesaindustryandongoingmonitoring,includingonDecentralisedFinance(DeFi),Non-FungibleTokens(NFTs),unhostedwallets,sanctionsevasion,andransomware.Toinformthisreport,FATFhasdrawnonthefollowinginformationsources:.AMarch2022surveyontheimplementationoftheTravelRule,whichcollectedresponsesfrom98jurisdictions(33FATFmembersand65FSRBmembers).Notalljurisdictionsrespondedtoeveryquestion.MeetingsoftheFATF’sVirtualAssetConsultationGroupthroughoutlate2021andearly2022,includingaconsultationinApril2022withrepresentativesfromtheVAsector..ThelatestresultsfromthecompletedFATFMutualEvaluationsReportsMERsandFollowupReportsFURsonR.15/INR.15(asofMay2022).eportsetsoutthefindingsofthisreviewasfollows.Section1providesabriefupdateonRecommendation15resultsfromacrosstheFATF’sGlobalNetwork.11The2021Guidanceincludesupdatesfocusingonthefollowingsixkeyareas:(i)clarificationofthedefinitionsofvirtualassetsandVASPs;(ii)guidanceonhowtheFATFtransactions;(iv)updatedguidanceonthelicensingandregistrationofVASPs;(v)rivatesectorsontheimplementationoftheTravelRule;(vi)principlesofinformation-sharingandco-operationamongstVASPSupervisors.dUpdateonImplementationoftheFATFStandardsonVirtualAssetsVASPsFATFOECD1.Section2summarisestheFATF’sfindingsonimplementationoftheFATF’sTravelRule..Section3providesabriefupdateonmarketdevelopmentsandemergingMLTFrisksforVAsbasedonFATF’songoingmonitoring..Section4setsouttheFATF’sNextStepsbasedontheconclusionsofthisreport.TargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPs7FATFOECD2EfPublicSectorImplementationofFATFStandardsforVAsVASPslStatusofRecommendationImplementation8.SinceJune2021,theFATF’sMutualEvaluation(MER)andfollow-upreport(FUR)resultssuggestthatjurisdictionshavemadeonlylimitedprogressinimplementingtheFATF’sR.15/INR.15(whichsettheglobalAML/CFTStandardsforVAsandVASPs).Forexample,fromJune2021toMay2022,theFATFanditsGlobalNetworkwiththeFATF’srequirementsonVAsandVASPs(R.15.3-15.11)12,13.Overall,mostjurisdictionsassessedduringthisperiodhavereceivedapartiallycompliant(PC)rating14,,showingthereisacontinuedneedtostrengthentechnicalcompliancewithR.1515.SinceJune2021,nojurisdictionhasreceivedafullycompliantratingwithR.15.Only12jurisdictionsoutof53(23%)havebeenassessedaslargelycompliantwithR.15,with6ofthesejurisdictionsbeingFATFmembersand6beingamemberofanFATFregionalbody(eithertheAsianPacificGroup,theCaribbeanFinancialActionTaskForce,orMONEYVAL)(SeeGraph1.1and1.2below).publishedfromJunetoMay2022.urrentanalysisexcludesjurisdictionswhoseMERswaspublishedsinceJuneThese5jurisdictionsbegantheirmutualevaluationprocessbeforetheadoptionoftherevisedmethodology(October2019).Therefore,theywerenotassessedaccordingtotherevisedmethodologythatincludesR15.3-11.pecifictoVAsandVASPs,italsoincludescriteriathatarenotspecifictoVASPs(R15.1andR15.2inrelationtonewtechnologies).Therefore,ajurisdiction’sperformanceonthesecriteriawillalsoimpacttheiroverallR.15rating.Therearefourpossiblelevelsofcompliance:compliant(C),largelycompliant(LC),partiallycompliant(PC),andnon-compliant(NC).Theseratingsarebasedonlyonthecriteriaspecifiedinthetechnicalcomplianceassessment.Cratingisgivenwhentherearenoshortcomingsintheextenttowhichacountrycomplieswiththestandard,LC(onlyminorshortcomings),PC(moderateshortcomings),andNC(majorshortcomings).edUpdateonImplementationoftheFATFStandardsonVirtualAssetsVASPsFATFOECD1FigureRResultsacrossFATFGlobalNetworkJune21toMay2022)508CompliantLargelyCompliantPartiallyCompliantNon-CompliantFigureRassessmentbyFATFFSRBregionJune021toMay2022)86420223115622433111222311562243311123FATFAPGCFATFEAGESAAMLGGABACGAFILATGIABAMENAFATFMoneyvalCompliantLargelyCompliantPartiallyCompliantNon-Compliant9.Figure1.3belowshowsabreakdownoftheresultsacrossthespecificFATFcriterion,orrequirements,onVAsandVASPsacrossthe53jurisdictions.ThisanalysisshowsthatjurisdictionsneedtostrengthenactionstoassessML/TFrisksfrommisuseofVAsandVASPs;andapplicationofariskbasedapproachtoVAsandonsdonotmeet,orpartlymeet,thisrequirement.Similarly,inlinewiththesecond12-monthreview,jurisdictionsalsocontinuetofacechallengesforsub-criterion15.9,whichrequiresjurisdictionstoapplyAML/CFTpreventativemeasurestoVASPs,suchascustomerduediligenceandtheTravelRule.41outof53jurisdictions(77%)donotmeet,orpartlymeet,thisrequirement.10.Notably,themutualevaluationresultsonR.15complianceareconsistentwithfeedbackreceivedthroughanFATFsurveytomembersinMarch2022,whichcollectedfeedbackonjurisdictions’progressinlicensingandregisteringVAsandVASPs.TheMarch2022surveyfoundthatofthe98respondingjurisdictions,42TargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPs9FATFOECD2jurisdictions(or43%)hadintroducedalicensingorregistrationregimeforVAsandVASPs,incomparisonto39%(52outof128)inJune2021.ThissuggeststhereisacontinuedneedforbothFATFandFSRBmemberstoacceleratecompliancewiththendVASPsinordertopreventcriminalmisuseFigureFATFandFSRBResultsonRindividualcriterionJune1toMay2022)060083333343212189868499995376MetMostlyPartlyRRR5.10R15.11NotNotlicable10TargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPsFATFOECD1TWOeofImplementationofFATSsTravelRuleusofimplementationenforcement11.ThissectionpresentsthefindingsoftheFATF’sMarch2022surveyonontheTravelRule.Intotal,98jurisdictionsrespondedtotheFATF’sMarch2022urveyFATFmembersandFSRBjurisdictionsFATFsTravelRuleorRecommendation16)requiresVASPstoobtain,hold,andtransmitrequiredoriginatorandbeneficiaryinformation,immediatelyandsecurely,whenconductingVAtransfersThisisakeyAMLCFTmeasurethatenablesVASPsandfinancialinstitutionstocarryouteffectivesanctionscreeninganddetectsuspicioustransactions.12.ThisreportfindsthatsinceJune2021,jurisdictionshavemadelimitedprogressinimplementingandenforcingtheTravelRule.Thereisthereforeanimmediateneedforjurisdictionstoprogressinthisarea,andfortheprivatesectortostrengthenthedevelopmentandinteroperabilityofTravelRulesolutions.AsofMarch2022,whileedhavingpassedTravelRulelegislation2.1andfigure2.2below).ThisreflectsonlyamarginalincreasesincetheFATF’sstartedpassingrelevantlawsandregulations,withmostexpectingtoimplementthembytheendof2023,aroundathird(36outof98,or37%)havenotyetstartedTFandFSRBmembersremainsunknown,butthemutualevaluationresultssuggestthatprogressamongnon-reportingjurisdictionsislikelytobeslowerthanforreportingjurisdictions.StandardsisassessedthroughtheMutualEvaluationProcessandFollow-upReports.ondingjurisdictionshadpassedtherelevantTravelRulelegislation,withonly10havingstartedenforcementandsupervisoryactions.Notably,directcomparisonsbetweenthisreportandpreviousFATFreviewsshouldbedonewithcaution,givenvariationsinrespondingcountriesandsamplesizes.Fortheremaining7responses,jurisdictionshaveprohibitedVAsorVASPs,andareconductingoutreachtodetectunlicensed/unregisteredactivities.TargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPs11FATFOECD2sthathavenotyetstartedintroducingtheTravelRulemanyFSRBjurisdictionsnotedthisisdueto:(i)thefactthatthecountryisstilldevelopingalicencing/registrationregimeforVAsandVASPs;and/or(ii)alackofdomesticuperviseandenforceTravelRulecompliance14.Intermsofprivatesectorimplementation,FATFconsultationsshowthattherehasbeensomeprogressoverthelastyearinthedevelopmentanduseoftechnologicalsolutionstofacilitateimplementation,particularlyfordomesticandVASPtoVASPtransactions.Still,industryneedstofurtherdevelopsolutionsthatareglobal,interoperable,andcanaccommodatefornuancesacrossnationalrequirements.risdictionImplementationEnforcementoftheTravelRule02677erelevantlawsrVASPsherelevantlawsStartedenforcementandsupervisoryactionsHavepassedtherelevantlawsbutnotwithenforcementandsupervisoryactionsStillpassingtherelevantlawsHavenotstartedintroducingtheTravelRuleProhibitedVAsorVASPsSource:FATFMarch2022TravelRuleSurvey.12TargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPsFATFOECD1eJurisdictionImplementationEnforcementoftheTravelRulebyFATFFSRB5015443326121315443326121321334221183117FATFAPGCFATFEAGESAAMLGGABACGAFILATGIABAMENAFATFMoneyvalProhibitedVAsorVASPsHavepassedrelevantlawswith/withoutenforcementandsupervisoryactionsStillpassingtherelevantlawsHavenotstartedintroducingtheTravelRuleSource:FATFMarch2022TravelRuleSurvey.ryApproachestoCommonImplementationIssues15.SimilartootherAML/CFTrequirements,whiletheFATFStandardsclarifytheheserequirementsintodomesticlegislationFurthermoreasidentifiedinthefirstandsecond12monthreviews,delaysinTravelRulenforcementperiodsacrossjurisdictions,resultinginsomeVASPsinteractingwithforeigncounterpartieswithoutsimilarTravelRulerequirement(alsoknownasthe‘sunriseissue’).16.Withthiscontext,therearenuancesinnationaltravelrulerequirementsacrosseminimisthresholdsdataprivacyissuesapproachestotransactionswithunlicensed/unregisteredandunhostedwallets.Notably,manyjurisdictionsarestilldecidingonwhatapproachtotakeontheseissues.WhiletheFATFStandardsandGuidancedoallowforvariations,providedcountriesandtheprivatesectormeettheminimumrequirements,thisreporthighlightstheneedforjurisdictionstocontinuetocoordinateoncommonissues,andforprivatesectortoadvanceglobaltechnologicaltoolsthatcanaccommodatefornationalnuances19.AddressingthiswillrequireworkbypublicsectortoeffectivelyclarifynationaloftravelrulesolutionsTargetedUpdateonImplementationoftheFATFStandardsonVirtualAssets/VASPs13FATFOECD2Approachestothesunriseissue17.Asmentionedabove,the‘sunriseissue’hasresultedinsituationswhereTravelRuleeatdifferentspeedsacrossjurisdictionsTorespondtothisFATF’sMarch2022surveyhighlightsthatsomejurisdictionsare:(i)introducingtemporaryflexibilityfordomesticrequirementstoaddressdelaysinglobalimplementation,and(ii)providingguidancetothedomesticVASPsonhowtodealwithsituationswherecounterpartiesareunlicensed/unregistered,orunabletoshareTravelruledata(seeparagraph19below).18.Fortheformerthisincludes:(i)phasedapproachesorgraceperiodsforimplementationofdomesticTravelRulerequirementswherebyflexibilityand/orasureswhenTravelRuledatacannotbesharedpriorto,simultaneously,orconcurrentlywithaVAtransfer(suchasenhancedCustomerDueDiligenceoncounterparties,orpost-factosubmissionsinlower-riskcases)20.Throughoutconsultations,theprivatesectorhaswelcomedsuchtransitionalflexibility.Goingforward,broadandrapideissuesandprovideadditionalincentivesforindustrytoacceleratecompliance.RequirementsfordomesticVASPsinteractingwithunlicensed/unregisteredforeignVASPs19.Aspartofthesunriseissue,somejurisdictionshaveintroducedrequirementsorguidancetoclarifyhowtheirdomesticVASPsshouldinteractwithforeignunlicensed/unregisteredcounterparts21.Therearetwodimensionstothisissue:(i)whetherdomesticVASPsarepermittedtomaketransactionswiththoseVASPs;and(ii)whetherdomesticVASPsarerequiredtosendTravelRule-relatedtransactionalbelow.a)DojurisdictionsallowtransactionsbetweenVASPsandforeignunlicensed/unregisteredcounterparts?BasedontheFATF’sMarch2022survey,hisquestionbutofthosethathave,most(22outof32jurisdictions)havedecidedtoallowdomesticVASPstotransactwithanyforeignVASP,whethertheyarelicenced/registeredornot.AhandfulofotherjurisdictionshavedecidedtorequiredomesticVASPstolimittransactionstoforeignVASPsthatarelicenced/registeredand/orapplyFATF’sTravelRule.Twojurisdictionshavedecidednottointroducemandatoryrequirementsorlimitationsonsuchtransactions,andinsteadprovidedguidancetoindustryonadditionalriskmitigationmeasuresthattheycantakeinsuch20Notably,Recommendation15requirescountriestoensurethatallVASPsshouldberegulatedforAML/CFTpurposesandlicensed/registered.Inordertoidentifypersonsoperatingwithoutalicenseand/orregistration,theFATF’sUpdatedGuidance(October2021)suggeststherangeoftoolsandresourcescountriesshouldconsidertoinvestigatethepresenceofanunlicensed/unregisteredVASP.21Outofthe87jurisdictionsthatrespondedtothisquestion,55jurisdictionsindicatedtheydomesticVASPstotransactwithanyforeignVASPs;3jurisdictionsplantolimittransactionstoonlyforeignVASP