FATF Sets 2027 Review as Few Jurisdictions Fully Meet Crypto Standards

The Financial Action Task Force (FATF) will review anti-money-laundering controls in major crypto-service jurisdictions, as only one of 149 assessed jurisdictions fully complied with Recommendation 15’s virtual-asset standards.

Initial results are due in June 2027, followed by further results in October. Announced after the FATF’s Oct. 28-30 plenary in Paris, the review will prioritize jurisdictions with materially important activity by virtual asset service providers (VASPs). Selection will use objective criteria tied to each jurisdiction’s current assessment status. No jurisdictions or review count were specified. The FATF also plans ongoing engagement, training and capacity-building for the jurisdictions involved.

Recommendation 15 applies FATF standards to virtual assets and service providers. The broader FATF Recommendations are an international standard that jurisdictions implement through measures adapted to their circumstances. In the April 2026 assessment of 149 jurisdictions, 64 were partially compliant, 33 non-compliant, 51 largely compliant and one fully compliant. That represents 43% partially compliant, 22% non-compliant and 34% largely compliant.

Gaps include converting risk assessments into effective controls, putting licensing and registration frameworks into practice, identifying VASP operators, and conducting risk-based supervision and enforcement. These issues show the challenge extends beyond setting rules to putting them into practice.

Under the Travel Rule, VASPs and financial institutions must collect, retain and securely pass along specified information about people initiating and receiving transfers. In the 2026 survey, 91 of 109 jurisdictions had passed Travel Rule legislation. Of those 91, 55 had not yet issued findings or directives or taken supervisory or enforcement action focused on the Travel Rule. The 91 jurisdictions represented 83% of those surveyed; the 55 without those steps were 60% of jurisdictions that had passed the law.

At the same plenary, countries agreed to coordinate on virtual-asset financial-crime threats, including fraud and scams. The targeted review adds a focused assessment and support process to that broader effort. It does not announce an immediate rule change or enforcement action.