According to Cointelegraph, the Financial Action Task Force (FATF) said it will launch a targeted anti-money laundering review covering jurisdictions with large-scale crypto activity, as it seeks to address gaps in the implementation of global AML standards.
Review to focus on jurisdictions where VASP activity is materially significant
FATF said the review will mainly target jurisdictions where virtual asset service provider activity is of “material importance,” and that it will consider those jurisdictions’ current assessment status as part of the process. The body added that regular evaluations and follow-up procedures will remain the primary tools for assessing compliance.
Preliminary findings scheduled for June 2027
Under the timetable released by FATF, preliminary conclusions will be published in June 2027, with more results to follow in October 2027. FATF also said the review will be followed by monitoring measures and a faster reporting mechanism to track progress as jurisdictions work to fix identified deficiencies.
FATF did not name the jurisdictions under review and did not say how many jurisdictions would be included.
July report had already pointed to travel rule enforcement gaps
The new review extends issues raised in FATF’s report from July this year. That report showed that 83% of surveyed jurisdictions had enacted travel rule legislation, but enforcement gaps remained significant.
Among 91 jurisdictions that had adopted the travel rule, 55 had not yet taken supervisory or enforcement action on compliance. Regulators also faced difficulties identifying unlicensed crypto businesses and overseeing offshore providers serving local customers.
The travel rule requires crypto service providers to share information on both the sender and the recipient of a transfer.
