The FATF (Financial Action Task Force) at its plenary session on October 25-27 in Paris once again ignored Ukraine’s call to include Russia in the list of high-risk jurisdictions – the so-called “black list”.
“The suspension of Russia’s membership remains in force. Following the statements issued since March 2022, the FATF reiterates that all jurisdictions should be vigilant about the ongoing risks associated with circumventing measures taken against the Russian Federation to protect the international financial system,” the final communiqué reiterates the organization’s position on Russia.
The FATF has also updated the “gray” list of countries that are under enhanced monitoring for money laundering and terrorist financing.
The organization removed Albania, Cayman Islands, Jordan and Panama from the gray list and added Bulgaria to it.
The list also includes Barbados, Burkina Faso, Haiti, Gibraltar, the Democratic Republic of the Congo, Yemen, Jamaica, Mali, Mozambique, Nigeria, the United Arab Emirates, Senegal, South Sudan, Syria, Tanzania, Turkey, Uganda, the Philippines and South Africa.
At the same time, the FATF left the blacklist unchanged. It includes countries that require countermeasures, such as the DPRK and Iran, and countries that require enhanced due diligence commensurate with the risks (Myanmar).
Among the main outcomes of the plenary session, the FATF agreed to publish a key report on crowdfunding for terrorist financing. Members also agreed to amend FATF Recommendation 8 to clarify the measures applicable to NPOs. The FATF will also scale up its work on criminalizing terrorist financing in countries (Recommendation 5).
FATF members recognized the need for full and effective implementation of the FATF Standards in all jurisdictions. This includes the analysis and exchange of financial information on terrorist financing networks, as well as the use of financial and law enforcement tools, such as financial sanctions and confiscation, to cut off terrorists from their sources of revenue and weaken the infrastructure that these groups need to achieve their destructive goals. This also includes the designation of identified terrorists and terrorist groups in accordance with relevant UN Security Council resolutions.
In an important milestone, the press release notes, delegates also agreed on a significant set of amendments to the FATF Recommendations that will provide countries with a much more powerful toolkit of measures to deprive criminals of the proceeds of crime. To further improve global asset recovery efforts, the FATF also published a report that sets out recommendations for strengthening the role and use of Asset Recovery and Investigation Networks (ARINs) in investigating transnational money laundering cases.
The FATF also approved reports on illicit financial flows resulting from cyberspace fraud and the misuse of citizenship and residence permits through investment programs, the report said.
Following recent amendments to the beneficial ownership and transparency standards, delegates also agreed to release for public comment an updated risk-based FATF Guidance on Recommendation 25 on beneficial ownership and transparency of legal arrangements.
