Key points:
- FATF and MONEYVAL held joint plenary in Strasbourg, France.
- Over 200 jurisdictions participated in anti-financial crime discussions.
- Latvia’s mutual evaluation approved under new MONEYVAL round.
- Bolivia, Virgin Islands (UK) added to increased monitoring list.
- Croatia, Mali, Tanzania removed after completing action plans.
STRASBOURG, France: The Financial Action Task Force (FATF) and the Council of Europe’s anti-money laundering body MONEYVAL have concluded a two-day joint plenary session here, unveiling key reforms aimed at bolstering global efforts to combat money laundering, terrorism financing, and proliferation financing.
The high-level meeting, chaired by FATF President Elisa de Anda Madrazo and MONEYVAL Chair Nicola Muccioli, brought together over 200 jurisdictions and international observers. It culminated in the adoption of significant updates to global financial standards, reflecting a renewed push for transparency and international cooperation in the fight against illicit finance.
Key reforms and updates
Among the most significant outcomes was the approval of changes to Recommendation 16 of the FATF Standards, enhancing transparency in cross-border payments exceeding USD/EUR 1,000. These reforms aim to simplify the information requirements for financial transactions and will formally take effect in 2030, following their publication on 18 June 2025. The changes align with the G20 agenda to make global payments faster, cheaper, and more secure.
The plenary also endorsed updated guidance on financial inclusion, encouraging financial institutions to adopt a more flexible, risk-based approach, particularly for low-risk clients. The guidance seeks to counteract the problem of “de-risking,” where financial services are denied due to perceived compliance burdens. A new national risk assessment toolkit and an updated assessment methodology were also approved.
Protecting non-profit work
In response to concerns over unintended consequences of anti-financial crime measures on non-profit organisations (NPOs), the FATF introduced new safeguards to ensure that legitimate civil society operations are not disrupted. The new procedures aim to help jurisdictions identify and address misapplication of standards affecting NPOs during evaluations and follow-up processes.
Latvia evaluation approved
The plenary marked a milestone by approving the first mutual evaluation under MONEYVAL’s new round of assessments, focusing on Latvia. The final report, assessing Latvia’s effectiveness in combating financial crime, is set to be published later this year.
Meanwhile, the FATF updated its list of jurisdictions under increased monitoring, adding Bolivia and the Virgin Islands (UK) to the list. At the same time, Croatia, Mali, and the United Republic of Tanzania were removed after successfully completing their action plans and were commended for their progress.
The suspension of Russia’s FATF membership remains in effect, with FATF reiterating calls for vigilance against emerging threats linked to the Russian Federation.
Tackling emerging threats
The plenary also approved several new reports aimed at strengthening the international response to evolving financial threats. These include a detailed report on proliferation financing and sanctions evasion schemes, the most comprehensive global terrorist financing risk assessment to date—incorporating input from over 80 jurisdictions—and the 6th Targeted Update Report on virtual assets and Virtual Asset Service Providers (VASPs), which is set to be published later this month.
Enhancing global collaboration
FATF also approved new resources developed in partnership with the Egmont Group, Interpol, and the UN Office on Drugs and Crime (UNODC) to improve international cooperation on financial crime investigations and prosecutions.
Delegations from Kenya, the Cayman Islands, and Senegal participated under FATF’s guest initiative to promote regional representation and inclusivity.
