The second FATF Plenary under the Presidency of Elisa de Anda Madrazo has concluded in Paris. Delegates from over 200 jurisdictions discussed key global priorities for tackling money laundering, terrorist financing, and proliferation financing.
Major Outcomes from the FATF Plenary
Jurisdictions Under Increased Monitoring
+ Added:
Lao People’s Democratic Republic
Nepal
Both were added due to strategic deficiencies in their AML/CFT regimes.
- Removed:
Philippines
The FATF updated its statements on "high-risk and other monitored jurisdictions".
Financial Inclusion Prioritised
The FATF has updated its Standards to strengthen the risk-based approach and support financial inclusion for the 1.4 billion people without access to basic financial services.
Addressing Online Child Exploitation
A new report will be published next month, offering practical tools to detect and disrupt financial flows related to child sexual abuse material. The focus is on using financial intelligence to safeguard vulnerable individuals.
Payment Transparency Revisions
The FATF will consult on proposed updates to Recommendation 16 to enhance cross-border payment transparency and reduce financial crime risks.
Russia’s Suspension Remains
The suspension of Russia continues, with FATF urging vigilance against sanctions evasion attempts.
Expanding Global Participation
Kenya joined as a guest under the FATF’s inclusivity initiative, alongside the Cayman Islands and Senegal.
Horizontal Review of Gatekeepers’ Compliance
The FATF reviewed how countries apply standards to lawyers, accountants, trust service providers, and real estate agents. Members were urged to address any gaps in the implementation of the FATF standards to this sector.
What AML Professionals Are Expected to Do
In response to the latest FATF outcomes, AML professionals should consider the following actions to stay aligned with evolving global standards:
Update Country Risk Assessments for Lao People’s Democratic Republic, Nepal and Philippines.
Review internal policies to ensure alignment with FATF’s updated guidance on financial inclusion.
Review internal systems and controls in anticipation of changes to Recommendation 16 on cross-border payment transparency.
The latest FATF updates serve as a reminder that compliance isn’t static.
One thing I’ve learned: Making small updates after each FATF plenary is more efficient than waiting for major changes. It reduces pressure and saves time.
Stay alert, stay up to date and take action today!
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