FATF Launches Review of Crypto Hubs’ Money Laundering Controls

The Financial Action Task Force (FATF) is launching a targeted review of jurisdictions with significant crypto activity to identify gaps in how governments apply global anti-money laundering standards. According to Cointelegraph, the intergovernmental watchdog said Friday that the review would focus mainly on jurisdictions with “materially important” virtual asset service provider (VASP) activity, while taking their existing assessment status into account. FATF said its regular assessments and follow-up procedures would remain its main tools for evaluating compliance. Initial findings are due to be published in June 2027, with further results in October 2027, followed by monitoring and faster reporting to track progress on deficiencies. FATF did not identify which jurisdictions would be reviewed or say how many would be included. Cointelegraph contacted the watchdog for further details but had not received a response by publication. The review follows a July FATF report that found 83% of surveyed jurisdictions had adopted crypto Travel Rule legislation, but enforcement gaps remained. Of the 91 jurisdictions with Travel Rule laws, 55 had not taken supervisory or enforcement action on 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.