Items of interest: w/c 9.2.2026
New Zealand adopts CARF
New Zealand is to adopt the Crypto-Asset Reporting Framework (CARF). It will come into force on 1 April 2026 with the first reports to be supplied by local crypto platforms to the Inland Revenue Department by June 2027.
(Source: Otago Daily Times)
No plans for Jersey to review corporation tax rates
There are no plans for Jersey to follow Guernsey and review its corporation tax rates. Leaving aside the global minimum corporation tax rate of 15% that is applied to MNEs with a turnover of $750 million or more, there are no plans to change the current corporation tax rates which are a standard 0%, save for the rate applied to finance firms which is and will remain at 10%.
(Source: the BBC)
MONEYVAL Committee reports on the use of virtual assets for money laundering and terrorist financing
On 10 February 2026 the Council of Europe’s anti-money laundering body, MONEYVAL, released a report entitled "Practice of Using Virtual Assets, Virtual Asset Service Providers in the Laundering of Criminal Property, Financing of Terrorism, and the Evasion of Sanctions Typologies" (the Report). Building on the 2023 edition, this December 2025 report offers a "horizontal review" of how member jurisdictions are regulating the crypto sector and tackling emerging threats like sanctions evasion.
Below are some of the report's key findings:
1. Enforcement lags behind regulatory initiatives
About 81% of jurisdictions now require VASPs to be licensed or registered, and over 90% have designated supervisory authorities. However, the report notes that enforcement against unlicensed, often offshore, operators remains a weak point, with limited visibility into the "black market" of non-compliant VASPs.
2. The rise of sanctions evasion
A primary focus of the report is the misuse of virtual assets to circumvent Targeted Financial Sanctions (TFS). The report identifies sanctions evasion as a growing typology, with state-sponsored actors utilizing VAs for proliferation financing (funding weapons of mass destruction). Bad actors are increasingly using mixers, tumblers, and Decentralized Finance (DeFi) protocols to hide transaction trails.
3. The Travel Rule Gap
Despite international standards, the "Travel Rule"—which requires VASPs to share customer data during transfers—remains a stumbling block. Only 46% of jurisdictions have fully operationalized it, with many non-EU countries still waiting to align with broader EU regulations.
4. Emerging Trends
Beyond sanctions evasion, the report highlights several active criminal trends involving VAs:
Fraud: Investment scams such as "rug pulls" (when developers abandon a project after raising assets, leaving participants with worthless tokens) that exploit the speed and irreversibility of crypto transactions.
Money Mules: Networks of individuals are recruited to funnel illicit crypto funds.
Online Gambling: Case studies from jurisdictions like the Isle of Man and Gibraltar reveal risks in the gaming sector, including links to child exploitation material.
5. The Need for Better Data and Cooperation
A major challenge for regulators is the lack of structured data on cross-border crypto flows. To combat this, the report encourages the adoption of blockchain analytics tools and the formation of Public-Private Partnerships (PPPs). Currently, only 40% of jurisdictions have active PPPs involving VASPs, but those that do report significantly improved intelligence and higher quality Suspicious Transaction Reports (STRs).
Conclusion
While regulatory "safety nets" are increasingly in place across MONEYVAL members, the rapid evolution of technology continues to outpace enforcement. The report concludes that jurisdictions must prioritize deep-dive risk assessments regarding sanctions evasion and invest in the technological capacity to trace illicit crypto flows.
(Source: MONEYVAL)