FATF Finalizes Key Working Areas in its Fifth Plenary Meeting

FATF’s fifth plenary meeting consisting of 206 members of the Global Network and Observer organization ended on October 25, 2021.

Dr. Marcus Pleyer, FATF’s President, has finally concluded the fifth plenary meeting consisting of 206 members of the Global Network and Observer organization. The members met in a hybrid format from the 19th to 25th October to discuss key issues of the regulatory landscape. 

The Global Network and Observer organization, which includes the International Monetary Fund (IMF), United Nations (UN), and World Bank (WB), discussed principal factors which included the following: 

1. Results of the FATF’s survey on cross border payments
2. Report on the digital transformation of AML/CFT

Update on Jurisdictions Under AML/CFT Monitoring 

The Paris-based global financial watchdog has added Turkey, Jordan, and Mali to its Greylist, while Pakistan is to remain on the monitoring list for money laundering. On the other hand,  Botswana and Mauritius were removed from the list. 

The statement released by FATF pointed out the need to discuss the use of shell companies and all the legal arrangements made by criminals to hide beneficial owners and their illegal profits. 

Virtual Asset Risk-Based Approach

An update was given regarding the risk-based approach on virtual asset service providers that they will be releasing a report on the 28th of October 2021. The update addresses P2P transactional risks and ways to recognize and diminish these risks. 

The FATF also published a declaration on the circumstances of Afghanistan, stressing solicitude about the risk environment for ML/TF in the country. The statement reaffirms the recent UN Security Council Resolution that prohibits the use of the Afghan area to abuse or invades any country, shelter or train terrorists, or plan a terrorist attack. 

The statement further states to call all jurisdictions to protect non-profit organizations from being used to finance terrorism.