The Council of Europe’s anti-money-laundering body on Tuesday published a new report on how criminals exploit crypto-assets to launder illicit proceeds, fund terrorism, and evade sanctions.

The MONEYVAL typologies report, which builds on earlier findings published in 2023, warns that law enforcement efforts to clamp down on unlicensed virtual-asset operators remains weak and that most jurisdictions have yet to implement the so-called “Travel Rule” recommended by the Financial Action Task Force.

The document also outlines how criminals are using virtual assets to commit fraud, dodge targeted financial sanctions, fund child exploitation, circumvent restrictions on gambling, underpin money-mule networks, and acquire weapons of mass destruction. 

While some European nations are deploying blockchain analytics and using public-private partnerships to address related risks, such efforts remain uneven, according to the report, which also noted that gaps in data collection have hindered efforts to fight criminal abuses of the technology. 

MONEYVAL cites case studies from Lithuania, Estonia, Hungary, Moldova, Cyprus, Gibraltar, Isle of Man, and other jurisdictions in the report. 

Read the full report here