How Does the Financial Action Task Force (FATF) Influence Global Crypto AML Policies?

The FATF is an intergovernmental body that sets international standards to prevent money laundering and terrorist financing. It issues guidance and recommendations, notably requiring countries to regulate Virtual Asset Service Providers (VASPs) and implement the "Travel Rule." Although FATF recommendations are not legally binding, non-compliant countries risk being "grey-listed," which can severely impact their financial systems.

Therefore, FATF standards effectively shape global crypto AML policies.