FATF Report States Virtual Assets Are Core Channels for Money Laundering, Calls for Global Crackdown on Fraudulent Schemes

The Financial Action Task Force (FATF), an international organization, has released a new report titled "Combating the Full Chain of Illicit Financial Flows Associated with Fraudulent Schemes," urging countries to take coordinated global action to dismantle fraudulent schemes and their criminal networks. The report highlights that criminals are using cash, virtual assets, instant payment platforms, and other channels for money laundering, and are leveraging AI, deepfakes, and automation technologies to scale their operations. Virtual assets have become a core channel for money laundering; in some cases, fraudulent schemes have dedicated over-the-counter trading desks for virtual asset exchanges and domestic fund transfers. The report mentions that blockchain analysis has revealed that the total amount of funds sent in by victims exceeds $100 million, ultimately flowing into clusters of virtual asset wallets associated with certain fraudulent schemes. FATF has proposed six core principles, including focusing on a broader criminal ecosystem, end-to-end disruption of illicit funds, enhancing inter-agency information sharing and cooperation, rapid cross-border action (especially within 24-72 hours after an incident), victim-centered approaches, and continuous adaptation to changes in criminal tactics.

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