FATF calls crypto a core laundering channel for scam compounds

The Financial Action Task Force published a report today saying virtual assets are used to launder money for scam compounds in Southeast Asia. The Paris-based group, which sets global anti-money-laundering rules, recommended targeting criminal networks behind the compounds, sharing information among banks, telecom and tech firms, and acting within 24 to 72 hours of a scam being detected. The report describes a seven-stage laundering process starting on social media and says stolen funds can reach an exit point in two to five minutes while victims typically notice after about 20 hours. It cites a prior FATF update finding most illegal blockchain activity goes through stablecoins and names Cambodia-based Huione Group, which laundered at least $4 billion from 2021 to 2025.