Global financial crime regulators tightened pressure on Iran and advanced new oversight of digital assets this week during a key meeting in Mexico City.
Representatives from more than 200 jurisdictions gathered in Mexico City for the Financial Action Task Force (FATF) Plenary from February 11–13. At the meeting, the body agreed to advance new measures on Iran, publish two digital asset reports, and adopt Mutual Evaluation Reports for Austria, Italy, and Singapore.
Stronger Measures Against Iran
FATF leaders highlighted ongoing security risks tied to Iran’s financial system and pushed all jurisdictions to adopt additional countermeasures, including restrictions on correspondent banking, digital asset transfers and business ties with Iranian entities due to “severe illicit finance risks.”
Iran remains on FATF’s “high-risk jurisdictions subject to a call for action” list, a category applied when a country shows significant strategic gaps in fighting money laundering and financing of terrorism and proliferation.
Crypto and Digital Asset Risk Reports
The FATF approved two reports on digital assets that regulators will publish soon:
- A targeted report on risks from stablecoins and unhosted wallets, which have rapidly expanded and pose potential channels for money laundering and illicit finance.
- A report on best practices and challenges in supervising offshore virtual asset service providers (VASPs).
Officials said these publications aim to help countries address evolving threats while supporting responsible innovation in digital finance.
Mutual Evaluations and Global Oversight
The Plenary adopted Mutual Evaluation Reports for Austria, Italy, and Singapore, which assess how well those countries implement anti-money laundering, terrorism financing and proliferation financing standards. The reports are slated for publication on the FATF website in coming months.
FATF also confirmed that the United States will undergo its own compliance evaluation later in 2026.
Leadership and Future Priorities
Delegates agreed to hold a FATF Ministerial meeting in Washington, D.C., in April 2026 to set strategic priorities for the next two years. The group also appointed Giles Thomson of the United Kingdom as the next FATF President, beginning July 2026.
Context
The FATF sets global standards to block criminal networks from exploiting financial systems. Countries placed on its blacklist or high-risk lists face heightened scrutiny, prompting banks and businesses to avoid financial links that could expose them to regulatory penalties or reputational harm
