In a report released on Wednesday, a global watchdog for anti-money laundering said that Qatar had taken few actions against crypto companies who violated a ban announced last year.

In a recent report, the Financial Action Task Force (FATF), which accuses Qatar of being lax in its anti-crypto campaign, urged the Qatar Central Bank to be more proactive about identifying and sanctioning Virtual Asset Service Providers (VASPs) who breached the crypto prohibition.

The report stated that “Qatar does not demonstrate that the competent authorities proactively identify potential breaches and take enforcement actions for these prohibitions,” on crypto firms, announced by the Qatar Financial Center Regulatory Authority for 2019. However, it cites 2 007 transactions which were rejected and 43 account closed for digital assets links.

It added that “no formal sanctions were applied to a natural person or legal entity for violating the prohibition”, even in a situation where a crypto provider operating without a license was found in the country.

The FATF, an international watchdog based in Paris, said that there were “major inconsistencies” between Qatar’s risks and the types and extents of terrorist financing activities prosecuted and convicted. This includes a controversial ” Travel Rule ” requiring identification of participants in cryptocurrency transactions.

Although less crypto-friendly that its neighbors, such as the United Arab Emirates, Qatar’s Central Bank Governor has pointed out the potential benefits for faster payments and said the bank is exploring a Digital riyal.

In a announcement posted on its website, the central banks said that the assessment found the country to be compliant or mostly compliant with forty technical requirements. This “demonstrated the country’s dedication to fighting illicit financing.”

The statement continued, “The State of Qatar is committed to improving and strengthening its combating system in accordance with international standards.” CoinDesk tried to contact the central bank to get more information.

Sandali Handagama is the editor.