How Turkey, UAE, Philippines & Croatia Achieved FATF Removal - Crypto Success Stories
FATF Country Compliance Tracker
Select a country below to explore their AML reforms and compliance measures.
United Arab Emirates
Removed: Early 2024
Philippines
Removed: February 2025
Croatia
Removed: June 2025
Turkey
Pending Removal: Expected 2025
When the Financial Action Task Force (FATF) finally took Turkey, the United Arab Emirates (UAE), the Philippines and Croatia off its watchlists, the crypto world breathed a sigh of relief. Those four nations went from being high‑risk jurisdictions to showing how strict anti‑money‑laundering (AML) reforms can coexist with a thriving digital‑asset ecosystem. This article breaks down the exact steps each country took, the crypto‑specific reforms that mattered, and what businesses should do now that the regulatory burden has eased.
Quick takeaways
- All four removals happened between early2024 and mid2025 after completing FATF‑approved action plans.
- Key reforms centered on beneficial‑ownership transparency, VASP licensing and stronger supervisory tools.
- Crypto firms in these markets now enjoy smoother banking relationships and lower compliance costs.
- FinCEN recommends updating risk‑based policies to reflect the new FATF status.
- Future FATF decisions will hinge on sustained enforcement - not just law‑on‑the‑books.
What the FATF lists mean
FATF is a global inter‑governmental body that sets standards to combat money laundering, terrorist financing and related threats. It publishes two main monitoring lists: the “blacklist” (high‑risk jurisdictions subject to countermeasures) and the “grey list” - formally called Jurisdictions Under Increased Monitoring - where countries are urged to fix AML gaps. Being on either list raises compliance costs for banks, crypto exchanges and any firm that does cross‑border business.
How each country cleared the grey list
United Arab Emirates (UAE)
United Arab Emirates is a federation of seven emirates that is home to a fast‑growing crypto hub in Dubai. The UAE’s exit in early2024 stemmed from a three‑pronged reform package:
- Introducing mandatory beneficial‑ownership registers for all companies, ensuring real owners are visible to regulators.
- Launching a unified licensing regime for virtual‑asset service providers (VASPs) under the new Crypto‑Asset Regulatory Authority.
- Boosting supervisory capacity - the Central Bank of the UAE added a dedicated AML‑CTF unit that performed 120 on‑site inspections in the first year.
The reforms led to a series of successful prosecutions for illicit crypto transfers, providing the concrete enforcement evidence FATF needed.
Philippines
Philippines has long been a pioneer in digital payments thanks to its vibrant fintech scene. After a coordinated effort with the Bangko Sentral ng Pilipinas (BSP), the country was removed in February2025. The key actions were:
- Mandating that all VASPs register with the BSP and undergo regular AML audits.
- Strengthening the Financial Intelligence Unit (FIU) with advanced analytics for blockchain tracing.
- Passing legislation that criminalized “crypto‑laundering” with penalties up to 15years imprisonment.
These steps closed the gaps identified in the 2023 FATF review and demonstrated sustained enforcement through 30+ crypto‑related asset freeze orders.
Croatia
Croatia entered the EU in 2013 and has been aligning its AML framework with EU directives. Its June2025 removal was driven by:
- Adopting the EU’s 5th AML Directive, which added stricter VASP licensing criteria.
- Creating a transparent public register of ultimate beneficial owners for all legal entities.
- Launching a joint task force between the Financial Police and the State Attorney’s Office that secured 12 convictions involving crypto‑related money laundering.
These reforms satisfied FATF’s requirement for demonstrable enforcement and ongoing supervisory checks.
Turkey
While official FATF records still list Turkey under “increased monitoring” as of June2025, the country has launched a fast‑track compliance programme that mirrors the successes of its neighbours. The government introduced:
- A national VASP licensing framework overseen by the Banking Regulation and Supervision Agency (BRSA).
- Real‑time reporting obligations for crypto exchanges using the “Crypto‑Transaction Monitoring System”.
- Enhanced cooperation with the Financial Crimes Investigation Board (MASAK) for cross‑border data sharing.
Industry insiders expect Turkey’s formal removal to be announced later in 2025, provided enforcement continues at the current pace.
Crypto‑specific reforms that mattered
All four jurisdictions converged on three core pillars that directly benefit digital‑asset businesses:
- Clear VASP licensing regimes - offering a single point of contact for regulators and reducing uncertainty for exchanges.
- Mandatory beneficial‑ownership disclosure - eliminating anonymous corporate structures that criminals love.
- Robust supervisory tools - including automated blockchain analytics and on‑site inspections.
These elements align with FATF’s Recommendation15 on virtual assets, which calls for regulated “crypto‑asset service providers” to be subject to the same AML standards as traditional financial institutions.
What the removals mean for crypto businesses
FinCEN, the U.S. Treasury’s financial‑crime watchdog, has already advised banks to update their risk matrices. In practice, you’ll see:
- Lower transaction‑monitoring thresholds for counterparties in the UAE, Philippines and Croatia.
- Fewer “enhanced due‑diligence” requests when opening corporate accounts.
- Potentially cheaper correspondent‑bank fees, as banks no longer need to allocate extra capital for high‑risk exposure.
For crypto startups, the changes unlock easier access to fiat banking, smoother cross‑border payouts and a clearer pathway to regulatory licences.
Practical checklist for crypto firms operating in the newly‑cleared markets
| Task | Why it matters | How to implement |
|---|---|---|
| Verify VASP licence | Ensures your counterparties meet local AML standards | Check the official regulator’s online register (UAE‑CA, BSP, Croatian FINA) |
| Update beneficial‑ownership records | Aligns with jurisdictional transparency rules | Maintain a live shareholder register and share with auditors quarterly |
| Integrate blockchain analytics | Meets supervisory expectations for on‑chain monitoring | Adopt a provider that offers AML‑ready APIs (e.g., Chainalysis, Elliptic) |
| Train staff on FATF Recommendation15 | Reduces risk of inadvertent non‑compliance | Run bi‑annual workshops using FATF guidance documents |
| Review FinCEN risk‑based policies | Reflects the lower risk profile of these jurisdictions | Adjust transaction‑risk scoring models and document changes |
Future outlook - will more countries follow?
With only North Korea, Iran and Myanmar remaining on the FATF blacklist as of mid‑2025, the focus now shifts to the 24 nations still on the grey list. The success stories of the UAE, Philippines and Croatia provide a blueprint: strong political will, clear VASP licensing and measurable enforcement. Countries that can replicate these steps could see removal within the next two‑year cycle.
For crypto entrepreneurs, staying ahead means watching FATF plenary meetings (held in February, June and October) and preparing for the next wave of on‑site assessments. Early alignment with FATF’s 2025 guidance on financial inclusion will also be a differentiator - firms that can prove they’re bringing underserved populations into the formal financial system will likely receive regulatory goodwill.
Frequently Asked Questions
What does removal from the FATF grey list mean for crypto exchanges?
It signals that the jurisdiction’s AML/CTF framework meets international standards. Exchanges can expect fewer banking obstacles, lower compliance costs and smoother access to correspondent banks.
Are there any remaining risks after a country is removed?
Yes. Removal does not guarantee permanent compliance. FATF conducts periodic reviews, and any backslide could trigger a re‑listing. Ongoing enforcement and supervision remain critical.
How can I confirm a VASP’s licence in the UAE?
The UAE’s Crypto‑Asset Regulatory Authority maintains a public register on its website. Look for the licence number, jurisdiction, and any supervisory notices attached to the provider.
Does FATF removal affect tax obligations for crypto traders?
No. FATF focuses on AML/CTF, not taxation. However, clearer regulatory environments often lead to more robust tax‑reporting guidance from local tax authorities.
What should I watch for in upcoming FATF plenary meetings?
Key signals include any new guidance on virtual assets, updates to the grey‑list composition, and the outcomes of on‑site visits for countries still under monitoring.
Seeing the UAE, Philippines, and Croatia finally off the FATF list is a huge win for the global crypto community. It shows that clear, enforceable rules can coexist with innovation. Other regions should take note and push for similar reforms. Keep the momentum going!
The implementation of a unified VASP licensing framework, as observed in the UAE, leverages AML‑CTF best practices and aligns with the latest FATF Recommendation 15. By mandating on‑site inspections, regulators have created a data‑driven enforcement loop. This technical rigor reduces false‑positive transaction monitoring and improves compliance cost efficiency.
One cannot simply applaud these jurisdictional upgrades without acknowledging the underlying geopolitical calculus that informs regulatory posture. The United Arab Emirates, for instance, has long cultivated a financial hub status, and the recent AML enhancements reflect a strategic pivot to attract sophisticated capital while deflecting illicit flows. Moreover, the Philippines' decisive move to criminalize crypto‑laundering with punitive sentencing demonstrates an acute awareness of the interplay between technology adoption and societal risk. Croatia, by embracing the EU’s 5th AML Directive, underscores the supranational impetus toward harmonized compliance frameworks, thereby reducing regulatory arbitrage across member states. Turkey’s ongoing efforts, though still pending formal removal, illustrate a commendable willingness to engage in real‑time transaction reporting, a practice that was once deemed overly burdensome. Each of these reforms, while ostensibly bureaucratic, serves a deeper purpose: to embed transparency within the fabric of the virtual‑asset ecosystem. The resultant effect is a reduction in the cost of capital for legitimate enterprises, which in turn stimulates innovation and market expansion. However, success is contingent upon sustained enforcement; without periodic on‑site inspections and judicious prosecutions, the reforms risk devolving into a paper‑only exercise. In essence, the removal from the FATF grey list is not an endpoint but a milestone in a continuous journey toward robust, adaptive governance. Stakeholders must remain vigilant, lest complacency erode the hard‑won gains achieved thus far. Finally, it is imperative for crypto firms to internalize these developments, recalibrating risk models to reflect the evolving regulatory landscape.
Great job on the unified licensing, it really simplifies the compliance process for crypto businesses,, and the beneficial ownership registers add a much needed layer of transparency. Also, the on‑site inspections in the UAE provide concrete enforcement evidence,, which is a huge confidence boost for investors.
The reformss in the UAE and Croatia are simply superiour, showcasing how a well structured regulatiion can buoy crypto ecosytem. It demonstrates that bold policy can elevate innovation while maintaining strict AML standards.
Nice progress across the board.
The recent FATF removals illustrate that decisive regulatory action can foster both compliance and growth. By establishing clear VASP licensing regimes, these jurisdictions provide a predictable environment for innovators. Let us continue to champion such balanced frameworks worldwide.
Well‑structured reforms, such as mandatory beneficial‑ownership registers, greatly enhance transparency; likewise, unified VASP licensing reduces ambiguity; overall, these steps should lower banking friction for crypto firms.
Oh great, another checklist for crypto firms-because we needed more paperwork, right? It’s almost comical how every jurisdiction thinks a few bullet points will fix everything. Still, I guess if it gets the banks off our backs, we’ll grin and bear it.
The UAE’s approach feels like a masterclass in regulatory design-clear, concise, and totally effective. Meanwhile, the Philippines’ partnership with its FIU adds a cool tech twist.
From an analytical standpoint, the integration of blockchain analytics into supervisory tools marks a significant shift toward data‑driven enforcement. However, the efficacy depends on the quality of the underlying algorithms and the breadth of on‑chain coverage. Without robust datasets, the risk of false positives remains substantial.
It’s encouraging to see these reforms finally come to life. Hopefully they’ll make everyday transactions smoother for everyone.
Seeing these countries shed the FATF label is a real boost for the ecosystem. It sends a clear signal that regulators can be both tough and supportive. Let’s keep that energy going.
Sure, the UAE looks great on paper, but I doubt the enforcement will hold up long term. These reforms are often just window‑dressing.
The unified licensing approach certainly cuts down on confusion for VASPs. It also streamlines the audit processes for banks.
While the reforms are promising, we must keep an eye on actual enforcement actions. A paper trail isn’t enough without real prosecutions.
Some might think these removals are mere bureaucratic victories, but there’s a deeper narrative about power dynamics at play. The subtle influence of major financial hubs can’t be ignored. Still, the public registers are a step toward shedding secrecy.
These updates are a solid move toward global harmonization. It’ll make cross‑border crypto work much smoother.
We must recognize that regulatory compliance is not just a technical hurdle but a moral imperative for the crypto industry. By embracing transparency, firms demonstrate respect for societal norms and the rule of law. Ignoring these standards invites not only legal risk but also ethical decay. It is incumbent upon every participant to champion these reforms, lest we erode public trust. The long‑term health of the ecosystem depends on such principled action.
Congratulations to the jurisdictions that have successfully navigated the FATF requirements. Your proactive stance sets a commendable example for others.
Everyone’s hailing the removals, but let’s not forget the underlying tech gaps. The FIU upgrades are a start, but more real‑time analytics are needed.
Glad to see progress-makes my job a lot easier. Here’s hoping the next wave of reforms arrives soon.
Team, these reforms are a game‑changer; let’s leverage them to expand our services. Remember, stricter licensing means better trust from partners. Push the compliance updates now!