FATF warns many countries, including African nations, are failing to enforce crypto AML rules—especially the critical ‘Travel Rule’.
The Financial Action Task Force (FATF) has raised alarm over global non-compliance with its crypto anti-money laundering (AML) guidelines, particularly the Travel Rule. This rule requires Virtual Asset Service Providers (VASPs) to collect and share sender and receiver information for significant crypto transactions.
As of June 2024, only 30 out of 200+ jurisdictions had begun enforcing the Travel Rule. FATF’s June 2025 bulletin urges urgent action, warning that regulatory inaction—especially in crypto-active regions like Africa—risks increased scrutiny or sanctions.
In Africa, South Africa and Mauritius lead in compliance, while Nigeria, Kenya, and Namibia lag behind or remain in legislative flux. Kenya and South Africa are already FATF grey-listed, impacting their access to global financial systems. FATF warns that banning crypto outright only cedes regulatory oversight and fails to prevent illicit flows.
With Africa’s crypto market booming due to remittances and inflation hedging, FATF stresses the need for harmonized, enforceable rules to balance innovation with security.
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