Libra is going to be under US money-laundering scrutiny

by in Cryptocurrency News

Libra is going to be under US money-laundering scrutiny

A senior US official in charge of combating terrorist financing announced on Tuesday, that even if Libra is based in Switzerland, it must comply with American anti-money-laundering standards for surviving.

Related: Facebook presents a new payment system on its social media

The undersecretary for terrorism and financial intelligence, Sigal Mandelker mentioned during the briefing at the US embassy in Bern that the US government is following Libra carefully.

She said that the point they have marked upon several times is that for working properly the Association is expected to have the right anti-money laundering and countering terrorist financing sanctions programs. She thinks they’re still in the very early stages of thinking through how they’re going to do that.

Majority of US lawmakers have mentioned that they are seriously concerned about the potentially criminal misuse of Libra and possible privacy violations. Chairwomen of the House Financial Services Committee, Maxine Waters took issue with Facebook’s decision of Switzerland as the base for Libra, saying in a July speech that the country’s “history as a monetary haven for criminals and shady corporations” was grounds for mistrust.

Mandelker announced that no matter where Libra decides to incorporate, they will have to comply with U.S standards if they’re attempting to survive.

In June when the social media giant announced it decided that Geneva is going to be a base town of Libra, Switzerland offered an enthusiastic reception. The Swiss State Secretariat for International Finance said Libra’s arrival was a “positive sign that Switzerland can play a role in an ambitious international project.”

David Marcus has already said that the corporation won’t continue its plans until all the regulators and governments in the world are satisfied.