That's not set in stone. Nothing the FATF does is binding. They just pressure individual governments to implement their standards -- it often doesn't actually happen. None of the FATF member countries have even passed complying legislation yet, let alone the rest of the world. Anything that exchanges do to comply at this point is completely voluntary, not required. And then, once laws are actually passed, enforcement is another question entirely.
Does what they propose somehow become a regulation or law overtime? What would an ideal timeline be like for something to be set into place?
The FATF has set a June 2020 deadline (one year) for countries to codify the Travel Rule into national law. At that time, they'll issue a statement flagging countries that are non-compliant or not working towards implementing the rules.
They have no real power to enforce anything of course, but there is an element of "soft power" as governments pressure each other into compliance. My guess is that some/most of the 36 member countries will have passed complying laws by that time. It might take a while longer than that before laws take effect and compliance is widespread.
