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FINMA Proposes Stricter Anti-Money Laundering Rules for Crypto Transactions

FINMA Proposes Stricter Anti-Money Laundering Rules for Crypto Transactions

Swiss Financial Market Supervisory Authority (FINMA) has announced a new proposal to impose stricter anti-money laundering guidelines for cryptocurrency transactions.

As stated in the proposal, crypto transactions over 1,000 Swiss francs ($1,025) will require client identification, compared to the current limit of 5,000 francs ($5,120). FINMA said the new limit has been considered due to “heightened” money-laundering risks in the crypto space.

The Swiss regulator’s proposal also meets the criteria for the Financial Action Task Force’s (FATF) sweeping “travel rules” for crypto established in June 2019, which require greater oversight and client information sharing between exchanges.

In addition to that, The FATF, which serves primarily as a global anti-money laundering watchdog, has imposed a $1,000 limit for unidentified crypto transactions under the new travel rule. This means crypto firms and exchanges will be required to collect and share client information on transactions that exceed the $1,000 limit.

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According to FINMA’s announcement, the regulatory body will hold a public consultation addressing the new crypto proposal on April 9, 2020.

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