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The sixth and final Plenary of the Financial Action Task Force (FATF) under the Presidency of T. Raja Kumar concluded with pivotal discussions and decisions shaping the future of global Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Counter Proliferation Financing (CPF) efforts.

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Let's talk how we can help your business.

Connect to a new world of efficiency by utilizing cleversoft’s business solutions.

The sixth and final Financial Action Task Force (FATF) Plenary, held under the two-year Singapore Presidency of T. Raja Kumar, took place in Singapore from June 26th to June 28th, 2024. During this event, delegates from over 200 jurisdictions and international organizations discussed key issues related to Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF). They also addressed modifications to assessment methodologies, asset recovery, and international cooperation frameworks. For more information, please visit the FATF website.

High-Risk and Monitored Jurisdictions

The FATF updated its statements on high-risk jurisdictions, removing two countries from increased monitoring after successful on-site evaluations. Jamaica and Turkey were commended for addressing their AML/CFT deficiencies and will continue to collaborate with FATF and relevant regional bodies to further strengthen their regimes. Conversely, Monaco and Venezuela were added to the increased monitoring list, committing to action plans to rectify their strategic deficiencies.

Addressing DPRK and Russia

The FATF reiterated its concerns over North Korea‘s significant AML/CFT deficiencies and ongoing illicit activities related to weapons proliferation. Additionally, the suspension of the Russian Federation‘s membership continues, urging all jurisdictions to remain vigilant against risks arising from circumventing measures against Russia.

Mutual Evaluations of India and Kuwait

The joint FATF/APG/EAG assessment of India highlighted its robust AML/CFT framework, but called for enhanced supervision in non-financial sectors and more timely prosecution of ML/TF cases. Kuwait‘s assessment, conducted jointly with MENAFATF, recognised its legal framework but identified shortcomings in delivering effective AML/CFT outcomes, particularly in refining risk understanding and freezing terrorist-linked assets promptly.

Revised Criteria for ICRG Prioritization

A major achievement was the revision of criteria for the International Cooperation Review Group (ICRG) process, ensuring a more risk-based and capacity-conscious approach to grey and blacklisting countries with AML/CFT deficiencies. This revised framework will be applied in the upcoming evaluation rounds, enhancing fairness and transparency.

Updated FATF Standards and Asset Recovery

The Plenary approved assessment methodologies for countries’ compliance with updated FATF Standards focusing on asset recovery and international cooperation. These revisions mandate that countries prioritise asset recovery, enforce confiscation orders and facilitate timely international cooperation.

Horizontal Review of DNFBP Technical Compliance Related to Corruption

The FATF completed its review of measures in place to prevent gatekeepers (Designated Non-Financial Businesses and Professions such as accountants, lawyers, real estate agents, trust and company service providers) from facilitating money laundering and terrorist financing. The findings, to be published in July 2024, will highlight the criminal risks and the necessary measures to detect red flags of money laundering within these professions.

Virtual Assets: Targeted Update on Implementation of the FATF Standards

The FATF’s fifth annual update on the implementation of standards for virtual assets and virtual asset service providers (VA/VASPs) revealed progress but noted that 75% of jurisdictions are only partially or not compliant. This lag leaves virtual assets vulnerable to misuse. The FATF urges jurisdictions to implement these standards rapidly and fully, with the full update available in July 2024.

Payment Transparency

The FATF is revising its Standards to keep pace with the evolution of cross-border payment systems and changes in industry standards, like ISO20022. Extensive public consultation on these draft amendments aims to enhance the speed, cost-efficiency, transparency and inclusivity of cross-border payments while ensuring AML/CFT compliance. Further dialogue with stakeholders will precede the finalization of these amendments.

Global Network Cooperation

At the FATF-FSRB Annual High-Level Meeting, the FATF President and regional body Chairs agreed on priorities to enhance global network cooperation. These include increasing FSRBs’ participation in FATF work, preparing for the new round of mutual evaluations, and strengthening regional AML/CFT expertise. The Mexican Presidency aims to further these efforts by promoting transparency and inclusiveness.

Incoming Mexican Presidency’s Priorities

Elisa de Anda Madrazo, incoming FATF President, outlined her priorities for 2024-2026, focusing on financial inclusion, starting the new round of assessments, enhancing global network cohesion, supporting revised FATF Standards implementation, and continuing efforts against terrorist and proliferation financing.

cleversoft Commitment

The insights gained from this June FATF Plenary have an impact on our country risk scoring outcome.  As countries adapt to the changing regulatory scene, our team at cleversoft diligently incorporates the latest findings into our risk assessment models.  By closely monitoring developments, we ensure that our clients receive the most accurate and up-to-date risk assessments, helping them make informed decisions in an ever-changing global economy.  Monaco, which is now placed on the FATF’s increased monitoring list, has transitioned into the realm of high-risk jurisdictions. Although having been placed on the Increased Monitoring List during this plenary, Venezuela’s newly found position in this list will have no impact on its allocated risk score due to it being high risk for other factors.  Jamaica and Turkey on the other hand have successfully shed this label, signifying a step toward for these countries in their AML enforcement.

At cleversoft, we are dedicated to aligning with global AML/CFT standards to provide our clients with the most reliable and current risk assessment tools. Our commitment to supporting FATF initiatives means integrating these updated standards and methodologies into our solutions, ensuring you stay ahead in compliance and risk management. We celebrate the progress made in this Plenary and look forward to contributing to the continued global efforts under the new FATF leadership.

cleversoft remains your trusted compliance and regulatory partner committed to delivering the latest insights and developments.  We stand by your side ensuring that you are well-equipped to navigate these changes and make informed decisions in the ever-evolving regulatory world.