The Financial Action Task Force (FATF) announced on Friday that it will undertake a targeted review of jurisdictions that host significant virtual‑asset service provider (VASP) activity. The review aims to identify and address gaps in the application of global anti‑money‑laundering (AML) standards, with initial findings expected in June 2027 and a follow‑up report slated for October 2027. According to Cointelegraph, the FATF did not disclose which jurisdictions will be examined or how many will be included.

Scope and Focus of the Review

The FATF said the assessment will concentrate on jurisdictions deemed “materially important” for VASP activity, taking into account each region’s existing assessment status. Regular FATF assessments and follow‑up procedures will remain the primary tools for measuring compliance, but the new review will be complemented by accelerated monitoring and reporting to track progress on identified deficiencies.

Background: Travel Rule Adoption and Enforcement Gaps

The move follows a July FATF report indicating that 83% of surveyed jurisdictions have enacted Travel Rule legislation, which obliges crypto service providers to share sender and recipient information for transfers. However, the same report highlighted that enforcement remains uneven: 55 of the 91 jurisdictions with Travel Rule laws have yet to take supervisory or enforcement action, and many authorities struggle to identify unlicensed crypto businesses or oversee foreign providers serving local customers.

Implications for Crypto Businesses and Regulators

The targeted review signals heightened scrutiny for crypto hubs and could prompt stricter supervisory actions, especially where enforcement of the Travel Rule is lacking. Crypto firms operating in jurisdictions under review may face increased reporting requirements and faster compliance deadlines. Regulators are expected to use the review’s findings to prioritize resources and close oversight gaps, potentially influencing future policy on stablecoins and other high‑risk assets.

What to Watch Next

Stakeholders should monitor the FATF’s June 2027 interim findings for early signals on which jurisdictions may face heightened regulatory pressure. Subsequent October 2027 results will likely shape global AML enforcement strategies and could lead to new guidance on VASP licensing, cross‑border supervision, and stablecoin oversight.