The Financial Action Task Force (FATF) is launching a targeted review of jurisdictions with significant virtual asset activity to bridge the gap between its rules and actual enforcement. The review, agreed upon during the FATF plenary in Paris from October 28 to 30, 2026, under the UK presidency, focuses on key hubs covering approximately 97% of the global virtual asset market. Initial findings are expected in June 2027, with further results scheduled for October 2027.
The FATF has not named the jurisdictions under review but will use objective criteria tied to each country’s assessment status. The watchdog also plans to offer technical assistance to help these jurisdictions strengthen their frameworks and compliance capacity, not just grade them.
As of April 2026, the FATF had assessed 149 jurisdictions on its VASP standards, with 33 found non-compliant and 64 rated partially compliant. While 83% of surveyed jurisdictions had implemented Travel Rule legislation by July 2026, significant gaps remain in risk-based supervision and enforcement of licensing requirements for virtual asset service providers (VASPs).
The FATF has also highlighted emerging threats, including industrial-scale fraud linked to virtual assets and the misuse of stablecoins. Criminal networks are increasingly exploiting regulatory weak spots, particularly in jurisdictions with lax compliance. The FATF’s power comes from peer pressure and its grey list, which currently includes 18 jurisdictions committed to fixing strategic deficiencies in their anti-money laundering regimes.