Treasury endorses new international payments standards

The Treasury Department endorsed the Financial Action Task Force’s new international payments standards and said it supports FATF reports on countering illicit finance.

Details: The FATF said the changes to Recommendation 16 of its standard, referred to as the “Travel Rule” in the context of virtual assets, will ensure consistency of information required in payment messages to build a clearer picture of who is sending and receiving money and will help to eliminate fraud and error affecting customers.

Background: Earlier this week, the FATF announced it would release new recommendations to streamline information collected for cross-border payments, with compliance set for 2030. It also said reports are coming on complex proliferation and sanctions-evasion schemes, terrorist financing risks, and the implementation of standards for virtual assets and virtual asset service providers.