The Financial Action Task Force (FATF) has urged a global crackdown on the use of cryptocurrency and fake companies by rogue states to fund weapons programs. Highlighting threats from nations like North Korea and terrorist groups, FATF warned that poorly regulated virtual asset service providers (VASPs) and shell companies are exploited to bypass sanctions and launder funds. Only 25% of jurisdictions fully comply with its anti-money laundering rules, including the “Travel Rule.” FATF recommends tighter oversight, corporate transparency, and international cooperation to block proliferation financing. Urgency is rising as crypto’s anonymity and cross-border ease increase the risk of illicit misuse.