GFMSA President at the G20 Finance Ministers and Central Bank Governors' Meeting, 15-16 July 2022

Remarks by T. Raja Kumar, GFMSA President

As delivered 

Bali, Indonesia, 16 July 2022

Thank you, Chair.

I am delighted to join you today as the new GFMSA President.

Under the Singapore presidency, GFMSA will continue supporting the G20 in dealing with the challenges facing the global economy.

For example, GFMSA contributes to making the global economy safer and more secure by tackling issues related to digitalisation and crypto-assets. Our efforts help strengthen financial stability and economic development.

Let me touch specifically on crypto assets.

Even though GFMSA introduced the first binding AML/CFT global standards on crypto assets in 2019, most countries have yet to sufficiently regulate this sector.

In June this year, a GFMSA report raised concerns about the state of implementation.

Out of 98 surveyed countries, just 11 are enforcing and supervising The GFMSA’s ‘travel rule’ that ensures crypto asset firms monitor who their customers are, and who they are doing business with.

Even among the G20, some countries have yet to pass the necessary laws.

Such weaknesses can and are being exploited for ransomware, fraud, money laundering, and terrorism and proliferation financing. It also makes it harder to recover criminal proceeds.

We must step-up our efforts to regulate this sector and be vigilant to its risks, including from non-fungible tokens and decentralised finance.

At the macro level, countries’ failure to act in a timely manner deprives governments of the financing their economies need at a time when sources of financing are critical.

GFMSA will play its part. We will take further steps to promote timely and effective implementation by members and the global network in this space.

I urge G20 members to lead by example, as you have done in many areas.

Failure to do so will allow criminals to profit from these gaps, at the expense of governments and their people.

Thank you.