FATF agrees targeted virtual asset reviews, approves scam compound report and removes four jurisdictions from increased monitoring

The Financial Action Task Force (FATF) agreed at its first plenary under the UK presidency to launch targeted reviews and accelerate follow up to address gaps in implementing its standards on virtual assets and virtual asset service providers. The reviews will focus on jurisdictions with materially important virtual asset sectors, using objective criteria and their assessment status, with results published in June and October 2027. The plenary also approved a forthcoming report examining illicit financial flows linked to scam compounds and the criminal business models sustaining them. This is the first output of the UK presidency’s fraud roadmap, advancing the fraud priority agreed in June. A broader study and recommendations on using FATF tools against fraud will follow. Bulgaria, Côte d’Ivoire, the Democratic Republic of the Congo and Monaco were removed from increased monitoring after completing their action plans and successful on-site visits. Vietnam’s slow progress prompted a warning that further steps will be considered unless it makes tangible improvements by the next plenary. Updated statements reinforced calls for Myanmar to address extensive fraud and scam activities and for Iran to criminalize terrorist financing and establish targeted financial sanctions in line with FATF standards. For jurisdictions remaining under increased monitoring, the accompanying statement reiterates that this status does not itself call for enhanced due diligence or the exclusion of entire customer categories. The plenary adopted mutual evaluation reports for Mexico and the United States, with publication scheduled for December 2026 after quality and consistency review. Under the current evaluation round, countries receive a roadmap of key actions required within three years. A more tailored evaluation approach will apply to a subset of developing countries with limited capacity, alongside enhanced assessor training to prioritize reforms according to risk. A forum in Dallas on December 1-2, 2026, will bring authorities and industry together to develop a policy statement on applying the risk-based approach in practice, with publication planned shortly afterward.