On June 13, the Financial Action Task Force (FATF) concluded its joint plenary with MONEYVAL in Strasbourg, France. The meeting resulted in the release of reports addressing sanctions evasion typologies and how terrorist groups like Hamas, Hizballah, and the Houthis finance their activities. Consensus was also reached on revising payments standards and regulating virtual assets to combat illicit finance.

"The FATF plays an important role in the global fight to counter terrorism and proliferation financing," stated Secretary of the Treasury Scott Bessent. He expressed encouragement at FATF's adoption of reports responding to private sector demand for actionable information against financial crime.

The FATF endorsed a report updating global terrorist financing trends for the first time in a decade. This document includes input from over 80 countries and aims to assist governments and financial institutions in identifying groups like Hamas, Hizballah, and the Houthis within international financial systems.

A new report on proliferation financing details how actors associated with Iran, North Korea, and Russia evade sanctions. The report includes 40 case studies focusing on North Korea's revenue-raising methods for its weapons program. This information will guide public and private sectors in mitigating proliferation financing risks.

Revisions were made to Recommendation 16 concerning domestic and cross-border payments. These changes aim to enhance transparency and efficiency while involving non-bank financial institutions. The updated standard aligns with G20 calls for faster payments, set to be implemented by 2030.

Two reports on virtual assets were approved by FATF members. One highlights progress in implementing standards for virtual assets; the other outlines good practices for supervising them under Recommendation 16. Despite progress noted globally, enforcement actions related to misuse remain modest.

Procedural changes were also approved to address unintended consequences of FATF standards that hinder legitimate non-profit activities. These amendments aim to prevent countries from disrupting humanitarian efforts under anti-money laundering/counter-terrorism pretenses—a project closely supported by Treasury during Mexico's presidency of FATF.