Financial Action Task Force (FATF)
An intergovernmental body that sets global anti-money-laundering standards, including the crypto Travel Rule, for countries to adopt.
Founded by the G7 in 1989, the FATF writes recommendations that member jurisdictions translate into national law. It has no direct enforcement power, but its grey list of weak-compliance countries carries real reputational and financial weight.
Its 2019 guidance pulled virtual-asset service providers into the same framework as banks. That guidance produced the Travel Rule and pushed exchanges worldwide toward identity checks. Roughly 200 jurisdictions follow its standards, though enforcement quality differs sharply.
Related terms
A FATF requirement that firms share sender and recipient details on crypto transfers above a set threshold.
AML (Anti-Money Laundering)The laws and procedures meant to stop criminals from disguising illicit money as legitimate funds.
KYC (Know Your Customer)The identity checks financial firms run to confirm who their customers are before opening accounts.
OFAC SanctionsUS Treasury sanctions, enforced by a watchdog office, that bar Americans from transacting with blacklisted people and addresses.