This Week in Global Compliance — Cross-Border Enforcement Coordination and Crypto Oversight Advance
February 27, 2026 — Week of 21–27 February
Executive Summary
The final full week of February was defined by deepening cross-border enforcement coordination and continued expansion of crypto-asset supervision, alongside renewed warnings on large-scale fraud infrastructure operating across jurisdictions.
Regulators in Europe and North America issued supervisory updates reinforcing expectations around transaction monitoring model validation, sanctions screening quality assurance, and governance accountability. In parallel, law enforcement agencies announced coordinated actions targeting international scam networks leveraging digital assets and layered payment structures.
These signals confirm that cross-border exposure, crypto integration, and fraud-linked transaction flows remain core supervisory priorities heading into the second quarter of 2026.
Top Signals
1. Coordinated enforcement actions target cross-border scam networks
Authorities across multiple jurisdictions reported joint operations disrupting investment and impersonation fraud networks that relied on mule accounts, shell entities, and crypto conversion points to obscure proceeds.
Why it matters:
Institutions should expect increased information-sharing and parallel enforcement actions, requiring stronger controls over cross-border payment corridors and enhanced detection of mule account typologies.
2. Supervisors reiterate expectations for crypto transaction monitoring
Supervisory communications this week emphasized that institutions offering digital asset services must demonstrate effective on-chain transaction monitoring, travel rule compliance, and sanctions screening integration.
Why it matters:
Crypto exposure is being assessed under the same evidentiary standards as traditional AML frameworks, with regulators scrutinizing data lineage, alert handling, and governance oversight.
Deep Dives
1. Enforcement — Fraud infrastructure and mule account disruption
Recent enforcement announcements highlighted the dismantling of coordinated scam operations using structured layering through retail accounts and digital asset exchanges to move victim funds across borders.
Practical impact:
- Enhance detection scenarios targeting rapid inbound-outbound flows and account pass-through behaviour
- Integrate fraud intelligence indicators into AML monitoring calibration
- Strengthen oversight of accounts exhibiting mule-like characteristics across jurisdictions
2. Regulation — Governance and validation of monitoring models
Supervisory updates reiterated that transaction monitoring systems — including those applied to digital assets — must undergo periodic independent validation and governance review.
Practical impact:
- Conduct model validation covering scenario design, threshold tuning, and performance metrics
- Ensure sanctions screening extends to wallet addresses and intermediary counterparties
- Elevate board and senior management reporting on monitoring effectiveness indicators
Data Points
- Cross-border law enforcement cooperation continues to target investment and impersonation fraud networks using layered payment and crypto structures.
- Supervisors reiterated expectations for independent validation of AML and crypto transaction monitoring models.
Watchlist
- Additional coordinated enforcement actions against cross-border scam infrastructures
- Regulatory clarification on crypto travel rule supervision and data-sharing standards
- Continued scrutiny of mule account detection and remediation frameworks
- Alignment of sanctions, fraud, and AML governance reporting at board level
Sources
This briefing consolidates publicly available information from global regulators, supervisory authorities, sanctions bodies, financial intelligence units, and recognised news outlets covering the week of 21–27 February 2026.