The Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL) has published a report reviewing how virtual assets and virtual asset service providers (VASPs) are being used for money laundering, terrorist financing and the evasion of targeted financial sanctions. Drawing on information from 25 MONEYVAL jurisdictions, the updated horizontal review finds broad progress in regulatory and supervisory frameworks and in international cooperation, while highlighting persistent implementation and enforcement gaps. Most participating jurisdictions (81%) now require VASPs to be licensed or registered and more than 90% have designated supervisory authorities, but enforcement against unlicensed operators remains weak. Implementation of the Financial Action Task Force (FATF) “Travel Rule” under Recommendation 16 is still incomplete, with only 46% of jurisdictions having operationalised requirements to collect and transmit originator and beneficiary information for virtual asset transfers. MONEYVAL also identifies emerging risks including sanctions evasion, fraud, proliferation financing and child exploitation, alongside ongoing weaknesses in data collection on cross-border virtual asset flows, and calls for stronger integration of targeted financial sanctions and proliferation financing risks into national assessments, higher-quality suspicious activity reporting by VASPs, and improved investigatory capability, capacity building, guidance and cross-border cooperation.
Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL) 2026-02-10
Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures publishes review of virtual asset controls and flags sanctions evasion risks
MONEYVAL's report on virtual assets and VASPs highlights progress in regulatory frameworks and international cooperation but notes enforcement gaps. While 81% of jurisdictions require VASPs to be licensed, enforcement against unlicensed operators is weak, and only 46% have implemented the FATF "Travel Rule." Emerging risks include sanctions evasion and fraud, with calls for enhanced data collection, suspicious activity reporting, and cross-border cooperation.