FATF turns the crypto AML microscope on high-activity hubs 🔍

The Financial Action Task Force (FATF) has launched a targeted review of jurisdictions with significant crypto activity, focusing on gaps in governments’ application of global anti-money laundering standards.

Announced on Friday, the review will examine jurisdictions with “materially important” virtual asset service provider (VASP) activity and take their existing assessment status into account. The FATF did not name the jurisdictions under review or disclose how many would be included.

The intergovernmental watchdog said its regular assessments and follow-up procedures will remain its primary tools for evaluating compliance. Initial findings are scheduled for publication in June 2027, followed by further results in October 2027. The review will also include monitoring and faster reporting to track progress in addressing deficiencies.

The targeted review follows a July FATF report showing that 83% of surveyed jurisdictions had adopted crypto Travel Rule legislation, while enforcement gaps persisted. Of the 91 jurisdictions with Travel Rule laws, 55 had not taken supervisory or enforcement action over compliance. Authorities also faced difficulties identifying unlicensed crypto businesses and overseeing providers serving local customers from overseas. The Travel Rule requires crypto service providers to share information about the sender and recipient of transfers.