The Financial Action Task Force (FATF), a standard-setter, has stated that most jurisdictions are not fully compliant with international anti-money-laundering norms for cryptocurrency.

According to a report issued after a regular meeting of the watchdog chaired Singapore’s T. Raja Kumar, “nearly three quarters” of jurisdictions were only partially or not at all compliant with FATF requirements for virtual assets.

The statement stated that North Korea used illicit virtual assets to fund weapons of mass destruction, and called on companies to adhere to anti-money laundering standards as an “urgent” priority.

Raja Kumar, a reporter at the Friday press conference, said that virtual assets continue to pose a risk. This creates “significant loopholes” for criminals to take advantage of.

The statement stated that a forthcoming FATF report will urge jurisdictions close loopholes. It will focus on emerging risks from peer-to-peer and decentralized transactions, which do not use a regulated intermediate such as a wallet service provider. Raja Kumar said that FATF would publicly identify those countries who have not yet regulated, to encourage them.

The U.S. Treasury sanctioned Tornado Cash last year, claiming that hackers in North Korea had used it to fund ballistic rockets.

FATF chief: G-7 must take the lead in ending a ‘lawless’ crypto space

UPDATE (June 23, 15:38 UTC): Adds Raja Kumar comments.

Aoyon A. Ashraf is the editor.