FATF Plenary Outcomes One AML Audit

32 years ago, the Financial Action Task Force (FATF) – an inter-governmental body that promotes the adoption and implementation of legal, regulatory and operational measures for combating money laundering and terrorist financing, was established.

The First Plenary for 2021

In February, this Task Force, consisting of 205 delegates from the Global Network and observer organisations (such as the IMF, United Nations, and World Bank), held the first quarterly plenary for 2021.

The delegates discussed a number of initiatives relating to FATF’s strategic priorities, as well as AML/CFT(CTF) developments, and the frameworks of specific jurisdictions. Many advancements were made to address ongoing key issues, and work was finalised in several important areas.

Key Findings

Although a thorough overview of the outcomes can be found here, the key findings, regarding strategic initiatives, are as follows:

  1. Improving risk-based supervision (the FATF has approved new recommendations, and highlight effective strategies to overcome common implementation challenges regarding risk-based supervision).

  2. Mitigating the ML and FT(TF) risks of virtual assets (a consultation was launched last month, with respect to FATF guidance on virtual asset service providers, including concepts such as stable-coins, the travel rule, and peer-to-peer transaction. FATF propose to use the outcomes of the consultation to update its existing VASP guidance in June 2021).

  3. Strengthening measures to prevent the financing of proliferation of weapons of mass destruction (in June, the FATF will be publishing new guidance relating to the proliferation of weapons of mass destruction, including preparation of risk assessments to cater for proliferation financing, and identification).

  4. Improving terrorist financing investigations and prosecutions (new guidance around the detection, investigative strategies for common types of FT(TF) activity, and confiscation of assets as a tool to disrupt FT(TF), will be released to relevant government authorities).

  5. Tackling illicit arms trafficking and FT(TF) (the FATF will be providing relevant government authorities with a report that raises awareness of the links between illicit arms trafficking and FT(TF), and aids the development of effective operational responses).

Finally, the FATF acknowledged that, despite the challenges that Covid-19 continues to create, they remain committed to supporting and collaborating with global partners, to continuing strengthening the fight against financial crime.

We can help

Overall, these outcomes will have numerous implications for Reporting Entities, and those affected by AML/CFT legislation. If you would like to discuss these implications, and learn more about the FATF and the outcomes of this planetary, then get in touch with our specialised team of experts today.