Notabene is being used by the stablecoin provider to combat crime in cross-border transactions.
Tether is incorporating Notabene, which will assist the company in complying with Financial Action Task Force guidelines and preventing money laundering and cross-border crime.
Tether Addresses Money Laundering
Tether wants to put a stop to illegal transfers.
The industry’s largest stablecoin provider announced on Tuesday that it would integrate Notabene’s travel rule solution. Tether will be able to comply with Financial Action Task Force (FATF) guidelines and combat money laundering using its USDT stablecoin as a result of the move.
Tether will be able to securely transmit user data to Virtual Asset Service Providers using Notabene’s solution (VASPs). This will allow the company to comply with new Financial Action Task Force guidelines, a global financial watchdog.
According to the FATF’s travel rule guidelines, VASPs that deal with virtual assets must transmit specific customer data between counterparties for transactions exceeding a certain threshold. This will assist Tether in combating money laundering and cross-border crime, thereby protecting its customers.
Tether’s CCO, Leonardo Real, commented on the integration with Notabene:
“Because the Travel Rule has traditionally applied to financial institutions, we see this as an opportune moment to foster collaboration across traditional and digital channels in order to create better services for customers around the world.” We are honored to lead the charge on behalf of all stablecoins in order to make a positive difference in the protection of our clients.”
Tether’s willingness to follow FATF guidelines contrasts with previous controversies. Tether came under fire earlier this month after a Bloomberg report claimed that the company held billions of dollars in Chinese debt as the Evergrande crisis shook global markets. Furthermore, the Commodity Futures Trading Commission recently fined Tether and Bitfinex a total of $42.5 million for misrepresenting the backing for Tether’s USDT stablecoin.