The Financial Action Task Force (FATF), the global watchdog against financial crimes, conducted its second Plenary Mexico’s Elisa de Anda Madrazo’s two-year Presidency from 19 to 21 February 2025 at Paris, France.
- Delegates representing over 200 members of the FATF Global Network and observer organisations, including the International Monetary Fund (IMF), United Nations (UN), World Bank, International Criminal Police Organization (INTERPOL), and the Egmont Group of Financial Intelligence Units, participated in the Meeting,
- The Plenary meeting held on the sidelines of FATF Week starts from February 17 2025.
- Presidency Term: Elisa de Anda Madrazo’s Presidency began on 1 July 2024 and is set to conclude on 30 June 2026.
Here are the major outcomes:
- Membership & Global Cooperation
a.Guest Jurisdiction Initiative:
- Kenya joined the FATF as a guest to enhance regional representation. Kenya joins the Cayman Islands and Senegal who began participating in the guest initiative in October 2024.
b.Russia’s Suspension:
- Russia’s membership remains suspended (since February 2024) over concerns about sanctions evasion.
c.Leadership Change:
- The Plenary selected Mr. Giles Thomson, from the United Kingdom (UK) to be the next FATF Vice President. He will succeed Mr Jeremy Weil from Canada, who has served in this role since 1 July 2023 and will step down on 30 June 2025. Mr. Thomson will hold this position for two years from 1 July 2025.
- Compliance Updates: Grey List Changes
Jurisdictions Added to Increased Monitoring (Grey List):
- Laos or Lao People’s Democratic Republic (PDR) and Nepal were added due to strategic deficiencies in their anti-money laundering/countering terrorism financing (AML/CFT) frameworks. Both countries committed to resolving gaps in supervision, financial intelligence, and prosecution of financial crimes.
Jurisdiction Removed from Grey List:
- Philippines exited the list after successfully addressing its action plan. Key achievements included stricter supervision of casinos, improved access to beneficial ownership data, and enhanced TF investigations. The FATF urged continued collaboration with the Asia/Pacific Group to sustain reforms.
Other Monitored Jurisdictions:
Ongoing Monitoring & Voluntary Reporting: The FATF continuously identified jurisdictions with strategic AML/CFT deficiencies. While some await formal reviews by FATF or its regional bodies (FSRBs), others voluntarily report progress.
Progress Reviewed Since October 2024: Bulgaria, Burkina Faso, Cameroon, Croatia, Democratic Republic of Congo, Kenya, Mali, Mozambique, Namibia, Nigeria, Philippines (now delisted), South Africa, South Sudan, Tanzania, Venezuela, and Vietnam. These nations received updated status assessments.
Deferred Reporting Jurisdictions: Algeria, Angola, Côte d’Ivoire, Haiti, Lebanon, Monaco, Syria, and Yemen chose to delay progress updates. Their current status reflects earlier reports and may not capture recent developments.
- High-Risk Jurisdictions (Black List)
Countries subject to enhanced due diligence or countermeasures:
- North Korea (DPRK): Continued failure to curb weapons proliferation financing. FATF urged stricter countermeasures, including terminating banking ties.
- Iran: Still non-compliant with terror financing norms. Countermeasures reinstated due to incomplete reforms.
- Myanmar: Limited progress on AML/CFT. Enhanced due diligence advised; countermeasures may follow if no improvement by June 2025.
- Strategic Initiatives to Strengthen Global Financial Systems
a.Financial Inclusion & Risk-Based Approach:
- FATF revised its Recommendation 1 to promote financial inclusion for 1.4 billion unbanked individuals. Simplified due diligence will be applied in low-risk scenarios to expand access to financial services.
- A new guidance document will be developed (with public consultation) to help regulators implement these changes without compromising AML/CFT measures.
b.Combating Online Child Sexual Exploitation:
- A landmark report (to be released in March 2025) will guide authorities to track financial flows linked to live-streamed child abuse and “sextortion.” Case studies and expert inputs will aid in detecting offenders through transaction patterns.
c.Women in FATF Initiative:
- A successful event Women in FATF and the Global Network programme was held to support women’s careers within the FATF and the Global Network. The FATF will launch its 2nd edition of the FATF Mentoring Programme in March 2025.
About Financial Action Task Force:
President – Elisa de Anda Modrazo (Mexico)
Headquarters- Paris, France
Founded – 1989
Note – The FATF Plenary meets three times a year, usually in February, June and October.
