In the latest Financial Action Task Force (FATF) Plenary, several developments took place that you need to consider as part of your AML/CFT program.
The FATF Plenary Meeting
The third 2024 FATF Plenary meeting took place in Paris between 23rd-25th October 2024. Delegates from more than 200 jurisdictions attended.
Here's a breakdown of the most significant outcomes:
Completion of the FATF's Fourth Assessment Cycle
↳ The FATF completed assessments for Argentina and Oman, concluding a phase where AML/CFT effectiveness and risk-based measures were evaluated globally.
↳ Both countries show progress, but require improvements: Argentina in sanctions and sector supervision, and Oman in investigation and confiscation efforts.
Changes in the FATF's Grey List
↳ 𝗥𝗲𝗺𝗼𝘃𝗲𝗱: Senegal
↳ 𝗔𝗱𝗱𝗲𝗱: Algeria, Angola, Côte d’Ivoire and Lebanon
No changes in the black-list.
National Risk Assessments (NRAs) and Updated Guidance
The FATF updated NRA guidance to improve countries' understanding and mitigating measures of money laundering and terrorist financing (ML/TF) risks.
Financial Inclusion and Revised Standards
The FATF addressed unintended barriers to financial inclusion in AML standards, encouraging simplified measures for low-risk cases. Public consultations will begin, with finalized guidance expected in 2025.
FATF's Commitment to Diversity
The “Women in FATF” initiative, aimed at enhancing diversity, is set to expand. This aligns with FATF's broader goal of incorporating diverse perspectives into AML/CFT work.
What these updates mean for Compliance Officers:
-> 𝗨𝗽𝗱𝗮𝘁𝗲 𝘆𝗼𝘂𝗿 𝗖𝗼𝘂𝗻𝘁𝗿𝘆 𝗿𝗶𝘀𝗸 𝗿𝗮𝘁𝗶𝗻𝗴𝘀: Consider whether you need to amend your firm’s country risk ratings in light of the FATF updates.
-> 𝗨𝗽𝗱𝗮𝘁𝗲 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗗𝘂𝗲 𝗗𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 (𝗖𝗗𝗗) 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝘀: Implement targeted CDD adjustments for clients linked to newly grey-listed countries:
-> 𝗜𝗻𝗳𝗼𝗿𝗺 𝘁𝗵𝗲 𝗥𝗲𝗹𝗲𝘃𝗮𝗻𝘁 𝗧𝗲𝗮𝗺𝘀: Ensure that teams across the compliance, operations functions and the relevant management, are aware of these updates.
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