The Financial Action Task Force (FATF) has criticized Qatar Central Bank for weak enforcement of virtual asset regulations, while acknowledging its progress in beneficial ownership data collection, and highlighted Qatar's exploration of a central bank digital currency.
The Financial Action Task Force (FATF) has criticized the Qatar Central Bank (QCB) for lax enforcement of regulations on virtual asset service providers. In a recent report, the global anti-money laundering body stressed Qatar's need to enhance its capacities to counter advanced forms of financial crime, including penalties for virtual asset service providers.
Despite a 2019 announcement from the Qatar Financial Centre Regulatory Authority (QFCRA) prohibiting virtual asset services, FATF highlighted deficiencies in Qatar's enforcement. Although Qatar has shown "positive and consistent progress" in collecting beneficial ownership information, FATF states more accurate and updated controls are necessary.
The FATF urged Qatar to increase its efforts to detect money laundering and fully leverage its sophisticated analytical capabilities. Meanwhile, despite restrictions on virtual assets, Qatar is investigating possibilities for a central bank digital currency (CBDC). As of June 2022, the QCB is in the foundational stage of CBDC issuance, weighing its advantages and appropriate technological platforms.
