MONEYVAL Warns of Growing Crypto Crime and Sanctions Evasion Risks in New 2025 Typologies Report

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)  Warns of Growing Crypto Crime and Sanctions Evasion Risks in New 2025 Typologies Report

Europe’s anti-money laundering watchdog has delivered a stark assessment of how virtual assets are being exploited by criminals, sanctioned actors and fraud networks, and where regulators and firms remain exposed.

In its December 2025 follow-up typologies report, Practice of Using Virtual Assets, Virtual Asset Service Providers in the Laundering of Criminal Property, Financing of Terrorism, and the Evasion of Sanctions, the Council of Europe’s MONEYVAL committee concludes that while regulatory frameworks for crypto-assets have expanded rapidly, enforcement, data quality and operational maturity continue to lag behind the pace of risk. 

Drawing on surveys and case studies from 25 jurisdictions, the report finds that around 81 per cent of MONEYVAL members now require virtual asset service providers (VASPs) to be licensed or registered, and more than 90 per cent have designated supervisory authorities. Yet these headline gains mask persistent weaknesses. Detection of unlicensed operators remains largely reactive, Travel Rule implementation is incomplete in more than half of jurisdictions, and sanctions screening, though legally mandated, is often fragile in practice.

For MLROs and senior compliance leaders, the report signals a shift away from “framework building” towards “framework testing”, with regulators increasingly focused on outcomes, evidence and enforcement.

This article looks at…

• How virtual assets and crypto service providers are being exploited for money laundering, fraud and sanctions evasion
• Where European regulators and supervisors remain exposed
• Why Travel Rule compliance and data quality are still weak
• What MONEYVAL’s findings mean for MLROs and senior compliance leaders
• How firms should respond to rising regulatory and enforcement expectations

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