Crypto Laundering a ‘Material Risk’ for UK Ahead of FATF Review: RUSI

A RUSI taskforce has warned that crypto-related money laundering will be a major test for the UK in its 2027 Financial Action Task Force (FATF) review. The assessment will examine whether anti-money laundering rules are being enforced effectively, at a time when Britain’s new statutory crypto regime will still be bedding in.

The UK’s mandatory regime is due to begin on 25 October 2027, after FATF assessors are expected to visit in June. The taskforce cited police estimates that crypto is involved in 66% of UK investment fraud and that over-the-counter brokers may launder hundreds of millions of dollars annually. It also pointed to a £5.5 billion crypto seizure as evidence of what enforcement can achieve, while warning that limited capacity, resources and the reach of regulation could leave significant risks unaddressed.