FATF US evaluation adopted as crypto review begins
The FATF US evaluation was adopted at the Paris plenary, Treasury said, as the watchdog kept Iran blacklisted and launched a targeted review of countries with weak crypto oversight.
The global anti-money-laundering watchdog has signed off on its review of the United States. The FATF US evaluation was adopted at the Financial Action Task Force's plenary in Paris, the Treasury said on November 6, presenting the outcome as recognition that the American AML and counter-terrorist financing system is effective.
What happened
Treasury officials led the U.S. delegation to the meeting, the first under the United Kingdom's presidency. South Korean authorities who attended said it ran from October 26 to 30 at OECD headquarters, chaired by Giles Thomson, with representatives of around 200 member jurisdictions and organizations. Mutual evaluation reports for the United States and Mexico were both adopted.
The plenary also repeated its call for countermeasures on Iran, which stays on the blacklist, and reminded members to restrict correspondent banking, digital asset transactions and business ties with Tehran. It adopted a report on the money flows behind Southeast Asian scam compounds, which Treasury said often target older Americans.
On crypto, the FATF said implementation of its standards for virtual assets and service providers "remains uneven" and launched a targeted review, primarily of jurisdictions with materially important VASP activity. Initial results are due in June 2027, with more in October 2027. The FATF also urged donors and technical assistance providers to prioritize support for countries facing significant problems implementing Recommendation 15.
Why it matters
A clean FATF US evaluation strengthens Washington's hand as it presses allies on sanctions and illicit finance, and it arrives in a week when Treasury cut MEXC off from U.S. banks and sanctioned Canadian money exchanges. Mutual evaluations shape how banks and correspondents price country risk, so the outcome matters for cross-border flows.
The crypto review is the sharper edge. Jurisdictions with large exchange activity but weak enforcement of Recommendation 15, which covers rules such as the travel rule, face accelerated reporting and possible accountability steps at the next plenary. That follows FinCEN's decision this week on the travel rule threshold and the White House's earlier crypto scam crackdown. Members that lack laws based on Recommendation 15, or have not been assessed on it, will also report, South Korea's Financial News reported, noting that South Korea was not assessed on the standard in the FATF's fourth round of mutual evaluations.
What's next
The next plenary will set decision points on what the FATF can do about jurisdictions with systemic weaknesses. Offshore exchange hubs will be watching which countries end up in the targeted review. The FATF plans to fold the scam-compound findings into follow-up measures, with members stressing cross-border information-sharing, according to the Financial News.
Publication of the full FATF US evaluation report will allow a closer look at any recommended actions. Treasury's summary is in its press release.
This article is for information only and is not investment advice.