Financial Action Task Force which serves as the global money-laundering scrutinizer has revealed that the authority is keenly monitoring developments on Facebook’s highly-anticipated and controversial planned cryptocurrency project, Libra.
The statement was given by FATF’s new head, on Tuesday, as part of the growing stringent regulatory inspection of the project. Facebook’s Libra project is propounded for launch by June in the succeeding year. Since the time of its launch announcement this year, Libra has been under a constant negative backlash and critical vigilance from regulators and legal authorities worldwide.
One of the primary risk factors which are troubling the regulators is the possibility of usage of Libra in money laundering by investors. Also, there is a fear that the cryptocurrency might turn out to be an adverse element in the financial scenario leading to its instability.
The reputed President of FATF stated: “We want to make sure that if there are significant risks, they need to be addressed.”
“The anonymity afforded by virtual assets is being exploited by serious criminals. These activities are likely to be growing quickly, as law enforcement agencies are only seeing the tip of the iceberg,” said Liu while speaking at an event in London.
Recently, a senior U.S Treasury Official while addressing to reporters in Switzerland stated that Libra has to comply in accordance with the highest order standards and requirements set for money laundering and terrorist financing if it wants to kick start its operations without any hindrance.
The Financial Action Task Force was constituted thirty years ago to fight against money laundering. The organization, since then has been working hard in providing the necessary guidelines for the financial sector’s betterment and security. Earlier in June, FATF warned the countries to tighten their grip on cryptocurrency exchanges to curb the dealing of digital coins in cash laundering and financing terrorism.
In June 2019,Facebook revealed its Libra cryptocurrency project which was supported by firms like Visa, Mastercard, PayPal, and Uber. The project was announced in partnership with South American web marketplace Mercado Libre.