The Financial Action Task Force (FATF) has agreed to accelerate implementation of its standards on virtual assets and strengthen efforts to combat fraud and scam compounds as criminal networks increasingly exploit digital assets and cross-border financial systems.
The decisions were made at the FATF’s plenary meeting in Paris from October 28 to 30, the first under the UK presidency of Giles Thomson. Delegates from more than 200 jurisdictions and observers attended.
The global financial crime watchdog agreed to launch a targeted review and accelerated follow-up processes to help jurisdictions address gaps in implementing standards covering virtual assets and virtual asset service providers.
The review will focus on jurisdictions with materially important virtual asset sectors. Its findings will be published in June and October 2027.
The FATF also approved a report examining illicit financial flows linked to scam compounds, which it described as among the fastest-growing forms of organised crime globally.
Due to be published next week, the report examines how criminal networks move illicit proceeds and the increasingly integrated business models sustaining scam operations. It is the first output under the FATF’s roadmap on combating fraud during the UK presidency.
The plenary also removed Bulgaria, Côte d’Ivoire, the Democratic Republic of the Congo and Monaco from its list of jurisdictions under increased monitoring, commonly known as the grey list, following successful assessments of their progress in addressing anti-money laundering and counter-terrorist financing deficiencies.
Vietnam, meanwhile, faced renewed scrutiny over the pace of its reforms. The FATF expressed significant concern and said it would consider next steps if the country failed to make tangible improvements before the next plenary meeting.
The organisation also updated its statements on Myanmar and Iran, which remain subject to a call for action.
It reiterated concerns about extensive fraud and scam activities originating in Myanmar and urged Iran to criminalise terrorist financing and establish targeted financial sanctions in line with its standards.
Separately, the plenary adopted mutual evaluation reports on Mexico and the United States.
The assessments examine their effectiveness in tackling money laundering, terrorist financing and proliferation financing. The reports are expected to be published in December 2026.
