The Financial Action Task Force (FATF) has introduced several measures to strengthen global anti-money laundering and counter-terrorist financing standards during its plenary meeting. These initiatives include revisions to asset recovery standards, a report on terrorist groups using crowdfunding for attacks, and efforts to address corruption in citizenship and residency by investment programs. By adopting these measures, the FATF aims to deny terrorist organizations access to funds, protect the global financial system, and combat financial crime.
One significant development is the adoption of revised asset recovery standards, providing law enforcement, asset recovery agencies, and the criminal justice system with enhanced tools to target and recover criminal proceeds. Additionally, a report on crowdfunding techniques used by terrorist groups like Hamas was adopted, shedding light on their methods of raising funds for attacks. In response to commitments made in April 2022, the FATF also published a report on the misuse of citizenship and residency by investment programs, exposing how corrupt actors and criminals exploit these programs to conceal their identities, establish shell companies, or evade taxes.
Furthermore, the FATF revised Recommendation 8, which addresses the protection of non-profit organizations (NPOs) from misuse by terrorists and illicit actors. The FATF members also sought public comment on draft guidance to implement revised standards on beneficial ownership of trusts and similar legal arrangements. Additionally, the FATF will focus on enforcing Recommendation 5, which requires countries to criminalize terrorist financing. Lastly, Indonesia’s membership was approved as the FATF’s 40th member, acknowledging the country’s significant improvements in its anti-money laundering and counter-terrorist financing regime.
Overall, the FATF’s efforts aim to improve global standards in combatting money laundering and terrorist financing by increasing the effectiveness of asset recovery, targeting terrorist funding sources, addressing corruption in investment programs, protecting NPOs from misuse, and enforcing counter-terrorism measures at the national level. These developments reflect the commitment of FATF members, including the United States, to safeguarding the international financial system and combating financial crime.
