Outcomes of the FATF Plenary, 23-25 October 2024

The first FATF Plenary under the Presidency of Elisa de Anda Madrazo of Mexico has concluded, marking a new chapter in global AML/CFT/CPF efforts. Over three days, representatives from FATF’s Global Network, comprising over 200 jurisdictions, met to address key issues related to money laundering, terrorism financing, and proliferation financing. This October 2024 session introduced a range of outcomes aimed at enhancing financial transparency, strengthening inclusivity, and adapting standards to evolving risks.

Key Outcomes

Final Assessments of Argentina and Oman

The FATF reached a significant milestone by adopting the last two mutual evaluation reports in its fourth assessment cycle:

• Argentina: The FATF-GAFILAT joint assessment for Argentina recognized progress since the country’s previous evaluation in 2010, with strengthened domestic coordination and improved AML/CFT/CPF frameworks. However, areas such as targeted financial sanctions, supervision of certain sectors, and prosecutions of crimes aligned with Argentina’s risk profile still need enhancement, particularly regarding corruption and informal financial services.
• Oman: The joint FATF-MENAFATF evaluation highlighted Oman’s substantial improvements in recent years, especially in international cooperation, financial intelligence, and combating terrorism financing. While Oman’s technical compliance has been robust, further efforts to improve risk-based supervision, financial crime investigations, and safeguards for legal entities are encouraged.

Following the FATF’s quality and consistency review, both reports will be published, marking the formal close of FATF’s fourth cycle of mutual evaluations.

Updates on High-Risk and Monitored Jurisdictions

Senegal was removed from FATF’s increased monitoring list after completing its Action Plan and demonstrating significant progress in addressing AML/CFT/CPF deficiencies. The FATF also placed Algeria, Angola, Côte d’Ivoire, and Lebanon under increased monitoring as these jurisdictions commit to further develop their AML/CFT/CPF frameworks in line with FATF’s action plans.

Inclusivity Milestones: First Guest Jurisdictions

For the first time, Cayman Islands and Senegal participated as guests in the Plenary and Working Groups. This historic inclusion marks FATF’s commitment to fostering diversity in perspectives and regional representation within its Global Network.

Financial Inclusion and Revised Risk-Based Standards

Members advanced FATF’s financial inclusion agenda, agreeing to release updated standards for public consultation, specifically targeting Recommendation 1 on assessing risk and applying a risk-based approach. This revision aims to help countries adopt more flexible AML/CFT measures, especially where risks are deemed lower, promoting financial inclusion in underserved regions.

Revised National Risk Assessment Guidance

FATF has introduced updated guidance for national risk assessments, incorporating insights from 90+ jurisdictions. This revised framework will support countries, particularly those with fewer resources, in identifying and mitigating illicit finance risks effectively, aligning resources to areas with the highest impact.

Standards for Cross-Border Payments and New Terrorist Financing Risks

Recognizing the rapid evolution of payment systems, the Plenary furthered its work to update FATF standards for cross-border payments, addressing risks linked to these transactions. Additionally, the FATF is progressing on the latest insights into terrorist financing and proliferation risks, preparing for targeted actions.

New Project: Protecting Vulnerable Populations from Online Exploitation

A concerning rise in online child exploitation prompted the FATF to initiate a project focused on detecting financial indicators associated with this crime. This initiative aims to equip financial institutions and authorities with tools to identify suspicious transactions and intervene effectively, offering crucial protections for vulnerable individuals.

Enhanced Coordination with Data Privacy and Protection Stakeholders

The FATF launched a new project in partnership with data privacy experts, private sector entities, and international organizations. This initiative will explore ways to enhance information-sharing within AML/CFT/CPF frameworks while respecting data protection requirements. A secondary project will ensure that FATF standards are not misapplied to restrict non-profit organizations’ activities, safeguarding these groups’ rights and contributions.

Continuing the Women in FATF and the Global Network (WFGN) Initiative

Building on the progress under the Singapore Presidency, the FATF reaffirmed its commitment to diversity and inclusivity. The Plenary discussed proposals to enhance gender representation, introducing a second mentoring program to encourage more women leaders in AML/CFT and related fields.

Suspension of the Russian Federation’s Membership

Consistent with earlier statements, the FATF continues to suspend the Russian Federation’s membership, emphasizing vigilance against risks stemming from measures aimed at evading sanctions. This stance reinforces FATF’s dedication to safeguarding the international financial system from destabilizing threats.

Conclusion

The October 2024 FATF Plenary reinforced the organization’s commitment to promoting a safer, more inclusive, and resilient global financial system. With the completion of its fourth mutual evaluation cycle, FATF is setting the stage for its next round of evaluations with a focus on risk-based approaches, inclusivity, and effective standards. FATF’s ongoing projects, strategic initiatives, and partnerships underscore its pivotal role in protecting global financial integrity and addressing complex challenges in a rapidly changing world.

For more details on the outcomes of the FATF Plenary in October 2024, visit here.

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