The Financial Action Task Force (FATF), the global standard-setting body for anti-money laundering and countering the financing of terrorism and proliferation (AML/CFT/CPF), concluded its sixth and final Plenary under the Singaporean Presidency in Singapore today. During this session, several key actions were taken, including adopting Mutual Evaluation Reports (MERs) for India and Kuwait, agreeing to publish a report on non-financial gatekeeper facilitation of corruption, and discussing the priorities of the incoming Mexican FATF Presidency.
The FATF also issued a statement warning countries about the Democratic People’s Republic of Korea (DPRK)’s increasing financial connectivity with the international financial system. The organization reiterated concerns about the risks this poses for financing the proliferation of weapons of mass destruction. It emphasized the need to implement targeted financial sanctions against DPRK and terminate any correspondent relationships with DPRK banks.
“At a time when Russia is continuing to take destabilizing actions and seeking to increase its financial connectivity with North Korea, in violation of UN Security Council Resolutions, we welcome the FATF’s unwavering focus on combatting illicit finance, strengthening the global financial system, and preserving the international rules-based order,” said Secretary of the Treasury Janet L. Yellen. “Treasury will continue to pursue initiatives that maintain the United States’ role as a leader in efforts to combat money laundering, terrorist financing, and proliferation finance.”
FATF members agreed to undertake additional work related to global terrorist financing risks and sanctions evasion typologies for proliferation financing. They discussed limited progress on implementing FATF Standards on virtual assets globally. Due to ongoing misuse by entities such as North Korea, ransomware criminals, scammers, and terrorist groups, FATF will publish an update on this topic.
The MERs for India and Kuwait were adopted during this Plenary session and will be published soon on the FATF website. These reports result from peer reviews assessing both countries' AML/CFT/CPF legal frameworks and their implementation effectiveness.
Responding to calls from FATF ministers to enhance efforts against global security threats like corruption, a report reviewing member states’ compliance with specific FATF Recommendations was approved for publication. This report examined technical compliance concerning AML/CFT/CPF obligations supervision among designated non-financial businesses and professions (DNFBPs) vulnerable to corrupt actors.
Revisions were made to FATF's methodology for assessing standards on asset recovery during this Plenary session. These changes aim to assist Mutual Evaluation assessors in understanding tools available for law enforcement, asset recovery agencies, and criminal justice systems targeting criminal proceeds.
This meeting marked the end of Singaporean leadership within FATF; Elisa de Anda Madrazo from Mexico will assume presidency starting July 1st. The United States supports Mexico's Presidential priorities focusing on combating terrorist financing risks while promoting financial inclusion over two years ahead through strategies like its 2023 De-Risking Strategy developing national strategy towards inclusive finance.
Click here to read Outcomes from June 28th 2024’s FATF Plenary.
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