Fraud rings use virtual assets for money laundering... FATF urges 24-72 hour response

The Financial Action Task Force (FATF) has identified crypto assets as a major money-laundering channel for scam compounds, calling the first 24–72 hours after a fraud is detected the critical window for tracing, freezing and recovering funds. In a report published on the 5th, the global watchdog said criminal organizations move proceeds through crypto alongside cash, nominee accounts and informal remittance networks, and that some scam compounds operate on-site over-the-counter desks handling crypto exchange and local transfers. The report cited a Chainalysis case study of wallet clusters linked to scam compounds that received more than $100 million in victim funds before the money passed through laundering networks. The findings matter because they push national regulators and virtual asset service providers to speed up suspicious-transaction reporting and inter-agency coordination in the immediate aftermath of a scam. What to watch next is how jurisdictions and exchanges implement the 24–72 hour freeze-and-trace standard and whether FATF formalizes it in upcoming guidance.