FATF Launches Crypto-Focused Review of Money Laundering Controls

The Financial Action Task Force is zeroing in on crypto-heavy jurisdictions. On Friday, the intergovernmental watchdog announced a targeted review of places where virtual asset service providers are doing business at scale, aiming to close the gaps in how those governments apply global anti-money laundering rules.

The review will prioritize jurisdictions with what the FATF calls 'materially important' VASP activity, factoring in where those places already stand in the watchdog's assessment process. The FATF didn't name names, and didn't say how many jurisdictions made the cut. Cointelegraph reached out for specifics and hadn't heard back by publication time.

The FATF says its existing country assessments and follow-up checks will stay the main enforcement tools. Initial findings from the review land in June 2027, with more results in October 2027. After that, expect monitoring and faster reporting to keep tabs on whether flagged deficiencies actually get fixed.

The timing isn't random. A July FATF report found that 83% of surveyed jurisdictions had put Travel Rule legislation on the books, but enforcement is lagging badly. The rule forces crypto providers to share sender and recipient details on transfers.

That same report flagged that 55 of the 91 jurisdictions with Travel Rule laws still hadn't taken any supervisory or enforcement action. Regulators also admitted trouble spotting unlicensed crypto businesses and keeping an eye on providers serving local customers from abroad.

Translation: the rulebook exists, the policing doesn't. The FATF's crypto review is a push to close that gap before the 2027 findings go public.