FATF (Financial Action Task Force)

The Financial Action Task Force is the global money laundering and terrorist financing watchdog, an inter-governmental body established in 1989 that sets international standards for combating money laundering, terrorist financing, and proliferation financing, developing policy recommendations and monitoring implementation across member jurisdictions.

FATF's most significant crypto-related measure is the Travel Rule introduced in June 2019 and revised in June 2025 as Recommendation 16. The rule requires Virtual Asset Service Providers and financial institutions to collect, verify, and exchange customer information for virtual asset transfers above specified thresholds. VASPs must gather originator and beneficiary details including names, account numbers, addresses, and identification numbers, maintain transaction records, and make data available to law enforcement.

The revised 2025 Travel Rule strengthens payment transparency requirements and must be implemented by financial institutions by end of 2030. FATF maintains grey and black lists of jurisdictions with strategic deficiencies in anti-money laundering controls, directly impacting their access to global financial system. FATF standards influence national regulations including MiCA in Europe, FCA requirements in the UK, and FinCEN rules in the United States.