When you use a digital wallet, send crypto, or even open a neobank account, you’re interacting with rules created by the FATF, the Financial Action Task Force, an intergovernmental body that sets global standards to fight money laundering and terrorist financing. Also known as the Financial Action Task Force on Money Laundering, it doesn’t have police power—but its recommendations become law in over 200 countries. If a country ignores FATF rules, it gets blacklisted. Banks cut ties. Crypto exchanges shut down operations. Your ability to send money internationally can vanish overnight.
FATF doesn’t just target criminals—it reshapes how fintech, companies that use technology to deliver financial services like digital payments, lending, and investing operate. Every app that lets you buy crypto, send money abroad, or get paid early must now verify your identity, track your transactions, and report anything suspicious. That’s because FATF treats virtual asset service providers—like Coinbase or Revolut—the same as banks. And if they fail? Fines hit millions. Some startups shut down before they even turn a profit.
It’s not just about crypto. FATF’s rules drive anti-money laundering, the system of checks, audits, and reporting designed to stop criminals from hiding illegal money through financial systems across every corner of finance. From small business loans to peer-to-peer payments like Zelle, compliance isn’t optional—it’s baked in. That’s why some micro-savings apps require ID verification before you can deposit $5. Why your insurance provider asks for proof of income. Why BNPL services now report to credit bureaus. These aren’t just corporate overreach—they’re responses to FATF’s global playbook.
The real impact? If you’re using any modern financial tool, you’re already living inside FATF’s framework. It’s why your bank blocks transfers to certain countries. Why some crypto wallets won’t let you send funds unless you’ve verified your address. Why financial coaching platforms now include compliance training. It’s not glamorous. But it’s the invisible structure holding up the system you use every day.
Below, you’ll find real-world examples of how FATF’s rules show up in everyday finance—from how InsurTechs handle AI-driven claims to why virtual cards for SMBs now include transaction monitoring. No theory. No jargon. Just what you need to know to understand why your money moves the way it does.
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