world_organizations hard Fill in the Blank

FATF Recommendation 15 requires countries to apply AML/CFT measures to virtual asset service providers (VASPs), including licensing, supervision, and ensuring VASPs conduct _____ on their customers.

  1. background checks
  2. credit assessments
  3. customer due diligence
  4. tax audits

Answer: customer due diligence

The 'travel rule' under Rec. 15 mandates VASPs to obtain, hold, and transmit originator and beneficiary information for virtual asset transfers. This enhances transparency, deters illicit finance, and aligns crypto-asset regulation with traditional financial sector AML/CFT standards.

Topic Financial Action Task Force
Exam Relevance Banking, UPSC, SSC
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