FATF: Virtual assets have become a core channel for money laundering, calling for global action to combat fraud schemes and related illegal fund flows

The Financial Action Task Force (FATF) released a new report titled "Combating the Full Chain of Illegal Fund Flows Related to Scam Hubs," calling on countries to take globally coordinated action to dismantle scam parks and their criminal networks.

The report points out that criminals use channels such as cash, virtual assets, and instant payment platforms to launder money, and leverage AI, deep forgery, and automation technologies to scale up their operations. Among these, virtual assets have become the core channel for money laundering; in some cases, scam hubs even have dedicated over-the-counter trading counters for handling virtual asset exchanges and domestic fund transfers.

In one case, blockchain analysis revealed that the total amount of funds sent in by victims exceeded $100 million, ultimately flowing into a cluster of virtual asset wallets associated with a particular scam hub.

To address this, the FATF proposed six core principles, including focusing on a broader criminal ecosystem, end-to-end disruption of illegal fund flows, enhancing interdepartmental information sharing and cooperation, rapid cross-border action (especially within 24-72 hours after an incident), a victim-centered approach, and continuously adapting to changes in criminal methods.