On 21 February 2025, the Financial Action Task Force (“FATF”) concluded its first Plenary of 2025.
The February 2025 FATF Plenary Key Takeaways
1. Jurisdictions under increased monitoring (“Grey list”) changes
- Added to the Grey List: Nepal and Laos (Lao People’s Democratic Republic) will be under increased FATF monitoring, meaning elevated AML/CFT risks when dealing with these countries.
- Removed from the “Grey List”: The Philippines successfully exited, after more than three years. Amongst other efforts and results, the Philippines is now actively combating the risk of dirty money flowing through casinos in the country.
2. Jurisdictions subject to a Call for Action (“Black List”): No changes
3. FATF Membership: Suspension of the membership of Russia continues, meaning organisations must remain alert to sanctions evasion risks
4. Strategic initiatives
- FATF report on Horizontal Review of Gatekeepers’ Technical Compliance Related to Corruption.
– Affirmed the importance of the report issued in July 2024 which looked at actions FATF members have taken regarding lawyers, accountants, trust and company service providers and real estate agents. Relevant stakeholders are encouraged to continue to address related deficiencies.
- Financial Inclusion and the Risk-based Approach.
– Agreed to revise the FATF Standards to better support financial inclusion.
- Detecting and Disrupting Online Child Sexual Exploitation.
– Finalised a groundbreaking report looking on how to detect, disrupt and investigate the alarming monetization of live streaming of child sexual abuse and the “sextortion” of children. The report will be issued on 13 March 2025.
- Public consultations.
– Agreed to launch further public consultations on financial inclusion, payment transparency (Recommendation 16), and complex Proliferation Financing and Sanctions Evasions Schemes.
How do the above-mentioned changes affect your compliance? Contact us to know how we can assist.