FATF to review crypto hubs for AML failures, first results due June 2027
- The FATF agreed at its October plenary in Paris to run a targeted review of countries with large crypto sectors, focusing on those that have written AML rules but failed to enforce them.
- First results land in June 2027, with more in October, and crypto exchanges and the governments that regulate them should expect closer scrutiny and faster reporting demands.
- A July 2026 FATF report found most jurisdictions have Travel Rule laws, yet 55 of 91 had taken no enforcement action.
A targeted review has been launched on nations with lots of crypto activity. The review will be run by the Financial Action Task Force (FATF), with particular focus on countries with anti-money-laundering regulation but with a low enforcement rate.
The report will be released by June 2027 by the watchdog, with more set for October.
What the FATF agreed in Paris
The FATF held its October plenary in Paris, and it reached this conclusion during the plenary. The plenary, held from October 28 to 30, was the first plenary to be held during the tenure of President Giles Thomson from the United Kingdom.
The plenary was attended by delegates from over 200 jurisdictions. It was also the first time countries like Barbados, Namibia and Thailand were present, albeit through the FATF Guest Initiative.
Based on the agreement in Paris, attention will be placed on jurisdictions that have significant virtual asset sectors, compared to their current assessment status. The FATF will apply objective criteria, with close monitoring, instant reporting and quick follow-up in a bid to plug the gaps as soon as possible.
It’s still not known which countries are affected and how many there are. The FATF has not responded to a request for a list of the countries in view.
Laws on the books but still no enforcement
The agreement is a reaction to a perceived lack of enforcement of crypto regulation. The FATF released a report that found 83% of surveyed jurisdictions had adopted Travel Rule legislation. The adoption rate went up by 10% from last year. The report came out on July 16, 2026, and is the seventh targeted update detailing the application of crypto standards in countries.
The Travel Rule mandates crypto firms to report the details of a transaction (sender and recipient), just like bank wire transfers.
However, based on the report, 55 of the 91 jurisdictions that had adopted Travel Rule legislation had not carried out enforcement action.
Governments also reported trouble spotting unlicensed operators and policing offshore platforms that serve local users from abroad.
Why target crypto hubs?
The idea behind targeting crypto hubs is simple: concentration. Nations with lots of crypto activity or “materially important VASPs” make up about 97% of the global virtual asset market. Thus, a lack of enforcement in such jurisdictions puts others at risk.
Among other reasons for targeting such countries, the criminal networks that take advantage of uneven rules to commit fraud, evade sanctions and launder money are a huge one.
President Thomson said, “Effective implementation of the FATF Standards can no longer be delayed.”
The body pointed to incidents in Cambodia, Spain and North Korea as clear examples of the damage done by lack of enforcement.
Also, a separate report on the money flowing through scam compounds was approved by delegates at the same plenary.
Countries already bracing for scrutiny
Some nations are already making moves. For example, Spain put an end to anonymous use of crypto-ATMs, and now requires identity checks on every transaction. Türkiye also passed its fifth-round mutual evaluation in September, but was placed under enhanced follow-up due to a backlog of over 7,000 unprosecuted financial-crime cases.
The next major date for the sector is June 2027; results of the review will be published then, with a next batch in October.
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FAQs
Which countries will the FATF review?
The FATF has not named them. It said only that the review targets jurisdictions with "materially important" virtual asset activity, chosen on objective criteria and their current assessment status.
When will the FATF publish its findings?
Initial results are due in June 2027, with a further set in October 2027, according to the FATF.
What problem is the review trying to fix?
It targets the gap between law and enforcement: the FATF's July 2026 report found 83% of surveyed jurisdictions had Travel Rule legislation, but 55 of the 91 with such laws had not taken any supervisory or enforcement action.
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Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
