FATF considers crypto compliance as part of ‘grey list’ criteria

The global financial watchdog could use crypto law breaches as a factor to add jurisdictions to its grey list.

The Financial Action Task Force (FATF) may consider compliance with international cryptocurrency laws as part of the criteria for whether a jurisdiction should be added to its ‘grey list’.

The grey list includes places such as Syria and Haiti, and it’s used to denote jurisdictions where doing business is dangerous and could lead to sanctions against the party conducting it.

This is the first time FATF has made it known that moving forward, it is now considering using cryptocurrency checks to ensure that anti-money laundering and terrorist financing rules are not being breached.

Recently, one of the world’s biggest crypto exchanges was found to have facilitated transactions in Iran, effectively helping the country dodge sanctions.

By introducing an annual review, FATF should be able to determine whether any of the jurisdictions observed fall short of international standards.

If a country or a jurisdiction is found to not have been doing well, then it’s added to the said grey list which comes with increased monitoring.

The FATF has so far made no official confirmation about this move coming, but Al Jazeera spoke with people close to the matter.

Sources told the publication that a failure to comply with cryptocurrency rules would not necessarily result in immediate grey list status, mostly because it’s still hard to navigate cryptocurrencies in a cut-and-dry way.

That is why the FATF is reportedly planning to conduct annual checks and track how jurisdiction handle these concerns once they have been raised from one year to the next.

An official spokesperson statement by the FATF said that the organization will not comment on speculation but said that the watchdog will continue to seek “global compliance” on all levels.

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Written by Alex


Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.

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