FATF Demands Faster Global Rollout of Crypto AML Rules

Financial Action Task Force ministers on April 17 called for rapid worldwide implementation of existing anti‑money‑laundering standards for virtual assets and said they will hold lagging countries to account through peer reviews. The ministerial declaration singled out stablecoins and offshore virtual asset service providers for increased scrutiny.

The FATF tied stronger enforcement to quicker adoption of its Recommendation 15 framework for virtual assets and virtual asset service providers. Recommendation 15, revised in 2018 and clarified with a 2019 interpretive note, requires countries to assess virtual asset risks, use a risk‑based approach, ensure VASPs are licensed or registered, provide supervision by competent authorities, impose sanctions for noncompliance, carry out customer due diligence, keep records, file suspicious transaction reports and cooperate internationally. The 2019 guidance also supports the Travel Rule, which requires originator and beneficiary information to accompany certain transfers.

A 2025 targeted update by the FATF found persistent implementation gaps. Of 138 assessed jurisdictions, 29% were largely compliant with virtual asset requirements and one jurisdiction was fully compliant. A March 3, 2026 report examined stablecoin misuse in peer‑to‑peer transfers using unhosted wallets and cited data showing stablecoins accounted for 84% of illicit virtual asset transaction volume in 2025. A March 11, 2026 report described methods for detecting, registering, supervising and sanctioning offshore VASPs that exploit weaker oversight.

The declaration reads: “Considering the inherently cross‑border nature of virtual assets, we call for the rapid and effective implementation of the FATF Standards in the virtual assets sector across the global network, and through our peer‑review process, will hold countries who fail to expeditiously implement the Standards to account.” The language frames FATF’s approach as enforcing existing standards more quickly and consistently rather than creating a new rulebook.

FATF materials list specific measures for national authorities, including more rigorous registration and licensing of VASPs, stronger supervisory regimes, timely filing of suspicious activity reports, recordkeeping that supports investigations, and targeted sanctions against noncompliant firms and jurisdictions. The group also called for better tools to detect peer‑to‑peer misuse, with attention to unhosted wallets and stablecoin transfers.

The declaration and the group’s targeted reports will inform FATF’s follow‑up and peer‑review work. FATF noted that regulators, law enforcement and the crypto industry are among the actors referenced for strengthened oversight and cooperation on cross‑border virtual asset activity.