On June 27, 2014, the Financial Action Task Force (“FATF”) issued a report providing a general framework for understanding and addressing the anti-money laundering / countering the financing of terrorism (“AML/CFT”) risks associated with virtual currencies such as Bitcoin. Building on its 2013 New Payment Products and Services (“NPPS”) Guidance, the FATF report proposes a common set of definitions that can be adopted by government officials, law enforcement and private sector entities to reflect accurately the different forms that virtual currencies may take. The report also lays out the potential AML/CFT vulnerabilities posed by virtual currencies, and profiles three recent law enforcement actions involving the abuse of virtual currency for money-laundering purposes: Liberty Reserve, Silk Road and Western Express International.