The Financial Action Task Force (FATF) concluded its 5th Plenary session in Paris, France on February 23, 2024, under the presidency of T Raja Kumar of Singapore. The 3-day Plenary started on 21 February 2024, included discussions on key money laundering, terrorism financing, and proliferation financing issues.
- The 5th Plenary also concluded the FATF Week (19-23 February 2024), a week-long event, which includes Working Group and Plenary meetings attended by delegates from the global network.
Key Participants:
Delegates from over 200 Global Network members, alongside observer organisations such as the International Monetary Fund (IMF), the United Nations (UN), World Bank, the International Criminal Police Organization (ICPO) – INTERPOL, and the Egmont Group.
Key Outcomes of the Plenary:
The Grey List:
When a jurisdiction is placed under increased monitoring, it commits to promptly resolving identified strategic deficiencies within agreed timeframes.
- This list is commonly known as the “grey list.”
Note: At this Plenary, the FATF added Kenya and Namibia to the list of jurisdictions subject to increased monitoring (existing countries – 23).
FATF Updates its Watchlist:
i.Barbados, Gibraltar, Uganda, and the United Arab Emirates (UAE) were removed from FATF’s increased monitoring after successful on-site visits.
ii.They showcased significant progress in addressing the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) deficiencies.
iii.These jurisdictions had committed to implement an Action Plan to resolve the identified strategic deficiencies swiftly within agreed timeframes.
- FATF suspended membership of the Russian Federation on 24 February 2023
- Ukraine is not a member of FATF.
Black Listed countries as of February 24, 2024 – Democratic People’s Republic of Korea (North Korea), Iran, and Myanmar.
Note: No new countries/jurisdictions were added to the black list.
Public Consultation on Wire Transfers (Recommendation 16):
i.The plenary agreed to release options for changes to Recommendation 16 and its Interpretive Note on wire transfers for public consultations.
ii.It aims to adapt FATF Standards to evolving business models and messaging standards in payment systems, ensuring technology-neutral standards.
Payment Transparency:
i.The FATF worked on proposed amendments to Recommendation 16, to adapt to the evolving cross-border payment systems and industry standards particularly ISO20022.
ii.These revisions aim to help make cross-border payments faster, cheaper, more transparent, and more inclusive, ensuring AML/CFT compliance.
- It also ensures that FATF Recommendation 16 remains technology-neutral.
Note: The Plenary agreed to release the proposed revisions for public consultation.
Elisa appointed as the President of FATF:
i.Ms. Elisa de Anda Madrazo of Mexico was appointed as the next President of the FATF for a fixed 2-year term, starting on 1 July 2024.
ii.This decision followed a comprehensive process, including consultations with all delegations.
- She served as FATF Vice President from 1 July 2020 to 30 June 2023.
FATF on Russia:
Despite the suspension, Russia remains accountable for implementing FATF Standards.
- FATF members continue to monitor the situation and risks posed to the global financial system.
About the Plenary:
The Plenary is the decision-making body of the FATF. The FATF Plenary meets 3 times a year, usually in February, June, and October.
About Financial Action Task Force (FATF):
FATF is the global money laundering and terrorist financing watchdog. This inter-governmental body sets international standards to prevent these illegal activities.
President– T Raja Kumar (Singapore)
Headquarters– Paris, France
Established in– 1989
Members– 39 Countries
