Better regulations, greater enforcement and AI are going to be the focus of the Treasury’s fight against illicit finance.
The United States Treasury Department has released its biannual National Strategy for Combatting Terrorist and Other Illicit Financing. It contains four priority recommendations that may affect virtual assets in a variety of ways.
The Treasury strategy acknowledged that law enforcement is scrambling to keep up with developing financial technology. The first two Treasury priorities are to address regulatory gaps in Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) and create a more focused and effective supervisory framework. The Treasury said it would “assess the need for additional action on sectors not subject to comprehensive AML/CFT measures.”
Increasing enforcement is also on the agenda. The strategy said:
