world_organizations hard True/False

FATF Recommendation 16 (the 'travel rule') requires virtual asset service providers to obtain and transmit originator and beneficiary information for transfers above a threshold, enhancing transparency and enabling authorities to trace illicit flows in crypto-asset transactions.

  1. True
  2. False

Answer: True

The travel rule, adapted from traditional wire transfers, addresses anonymity risks in virtual assets. By mandating identity information exchange between VASPs, it deters money laundering and terrorist financing while preserving innovation. Implementation challenges include technical interoperability and privacy safeguards.

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