House of Representatives
Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024
Explanatory Memorandum
(Circulated by authority of the Attorney-General, the Hon Mark Dreyfus KC MP)FATF, 'Updated Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers' (Paper, October 2021).
The term 'private key' has been understood by the FATF to be a technology created in a pair with a 'public key' for each entity involved in a virtual asset transmission which encrypts and decrypts information during the initial part of the transmission so that only the sender and recipient can decrypt and read the information. A public key is available to everyone, while a private key is known only to the creator of the keys.
DAOs are an organisational structure with no central governing body and usually lack legal personality. DAOs may be used to govern protocols providing decentralised virtual asset exchange services and decentralised finance services, or a range of other purposes.
For example, industry has set a target date of June 2030 for decommissioning the Bulk Electronic Clearing System (BECS) which lacks the capacity to transmit the information about the payer and payee envisaged by FATF Recommendation 16.
Joras Ferwerda, Alexander van Saase, Brigitte Unger and Michael Getzner, 'Estimating money laundering flows with a gravity model-based simulation' (2020) 10(18552) Scientific Reports, 6
https://www.nature.com/articles/s41598-020-75653-x .
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