Where’s Wally? FATF, Virtual Asset Service Providers, and the Regulatory Jurisdictional Challenge

The chapter discusses the regulatory challenges faced by the Financial Action Task Force (FATF) in overseeing Virtual Asset Service Providers (VASPs) across different jurisdictions. It examines the historical context of FATF's regulatory framework and the increasing complexity of regulating VASPs due to their digital nature. The text explores the 'meaningful mind and management' test and its application to shell banks, highlighting the need for a more comprehensive approach to regulating VASPs. It also compares the regulatory approaches of various countries, such as Australia, Canada, Japan, the Netherlands, Singapore, and the UK, and discusses the limitations and vulnerabilities in their jurisdictional schemes. The chapter concludes with a call for closer collaboration between AML/CFT and tax authorities to strengthen the global regulatory framework for VASPs.