The report found that while some jurisdictions have made progress in implementing anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, global implementation is still lagging. Several countries have yet to take significant steps to regulate this area, and these countries need to urgently prioritize the full implementation of these standards. Based on 130 Financial Action Task Force (FATF) Mutual Assessments and Follow-up Reports since 2019, the revision of R.15/INR.15 reveals that 75% of jurisdictions are only partially or not compliant with FATF requirements, the same as in April 2023.
⚖️ Jurisdictions have made insufficient progress in implementing travel rules, a key AML/CFT measure. Nearly a third of survey respondents, including some jurisdictions that assess virtual assets/virtual asset service providers (VAs/VASPs) as high risk, have yet to pass legislation implementing travel rules. Even among jurisdictions that have passed travel rule legislation, supervision and enforcement remain low.
📢 The Financial Action Task Force (FATF) calls on all jurisdictions to expeditiously implement the FATF standards on VAs and VASPs, including the FATF travel rules. In line with the roadmap for improving the implementation of R.15 and addressing the issues identified in this report, the FATF will continue to:
1. 🌍 Provide outreach and assistance to lower-capacity jurisdictions, including those that are materially important in VASP activities.
2. 🤝 Facilitate the sharing of best practices, findings, and challenges, including those related to decentralized finance (DeFi), stablecoins, custody-free wallets, and peer-to-peer (P2P), and monitor market trends in these areas to identify significant developments that may require further work by the FATF.
3. 📈 Engage with FATF member states, global networks, technical assistance providers, and the private sector on progress and challenges.
Let’s work together to enhance global financial integrity! 🌟