The Financial Action Task Force (FATF) recently concluded its fifth plenary session under the Mexican presidency, focusing on initiatives to combat illicit finance. The meeting took place in Mexico and resulted in several key decisions, including the publication of two reports on digital assets, the adoption of mutual evaluation reports for Austria, Italy, and Singapore, and additional countermeasures targeting Iran.
The FATF addressed ongoing risks related to terrorist and proliferation financing associated with Iran. As Iran remains on the FATF’s blacklist, the organization reminded all countries to enforce United Nations Security Council Resolutions regarding Iran’s non-compliance with nuclear agreements. The FATF also called for further restrictions on correspondent banking, digital asset transactions, and business relationships with Iran due to significant illicit finance concerns.
During the session, members approved two new reports concerning digital assets. One report analyzes ways to reduce risks from stablecoins and unhosted wallets that can be misused for illicit purposes. The second report reviews good practices and challenges in managing risks linked to offshore digital asset service providers. According to the statement: “Digital assets play a crucial role in global innovation and economic development, and the United States appreciates the FATF’s efforts to prevent abuse of this critical industry.”
The plenary also adopted mutual evaluation reports for Austria, Italy, and Singapore. These documents provide peer-reviewed assessments of each country’s legal framework against money laundering, terrorism financing, and proliferation financing standards as well as their effectiveness in applying these measures. The United States is scheduled for its own compliance assessment by FATF in 2026.
Looking ahead, FATF agreed to hold a ministerial meeting in April 2026 in Washington D.C., where priorities for the next two years will be discussed. Additionally, it was decided that the United Kingdom will assume the presidency of FATF starting July 2026.
Further details about these outcomes are available at https://www.fatf-gafi.org/en/publications/Fatfgeneral/outcomes-fatf-plenary-february-2026.html.
