The Financial Action Task Force (FATF) held its February 2025 Plenary from the 19th to the 21st in Paris, marking a critical moment in the global fight against money laundering, terrorist financing, and other financial crimes. Under the leadership of FATF President Elisa de Anda Madrazo of Mexico, representatives from over 200 jurisdictions and international organizations gathered to discuss pressing financial security issues and update global compliance standards.

Strengthening Financial Inclusion

A major development from the Plenary was the FATF’s decision to revise its Standards to enhance financial inclusion while maintaining a risk-based approach to anti-money laundering (AML) and counter-terrorist financing (CFT). The organization aims to balance financial security with increased accessibility, particularly for underserved communities. To ensure a transparent and effective implementation, FATF will launch a public consultation process, seeking input from governments, financial institutions, and civil society organizations.

Combating Online Child Sexual Exploitation

The FATF approved a groundbreaking report on the financial aspects of online child sexual exploitation. The report explores how financial transactions can be tracked to detect and prevent crimes such as live-streamed abuse and sextortion. Drawing on global case studies, it offers best practices for financial institutions and law enforcement agencies to identify suspicious transactions linked to such illicit activities. The full report will be officially released at a dedicated event in London on March 13, 2025.

Changes in the FATF Grey List

Jurisdictions under increased monitoring, commonly referred to as the ‘grey list,’ saw key updates:

• The Philippines successfully exited the grey list after demonstrating significant progress in strengthening its AML/CFT framework. A successful on-site evaluation confirmed its compliance with FATF recommendations.
• Laos and Nepal were newly added to the grey list due to identified deficiencies that require urgent remediation. Both countries have committed to working closely with FATF to enhance their regulatory frameworks.
• Russia’s membership remains suspended, following decisions from previous meetings due to ongoing geopolitical and financial concerns.

High-Risk Jurisdictions: Continued Countermeasures

FATF reaffirmed its stance on high-risk jurisdictions, particularly Iran and North Korea. The organization urged member states to implement enhanced due diligence and, where necessary, countermeasures against financial transactions involving these countries. The decision underscores ongoing concerns regarding money laundering, proliferation financing, and terrorist financing risks emanating from these nations.

Leadership Update

During the Plenary, FATF announced the appointment of Mr. Giles Thomson from the United Kingdom as the next Vice President. Currently serving as the Director of the Office for Financial Sanctions Implementation and Economic Crime at HM Treasury, Mr. Thomson will assume his new role on July 1, 2025, succeeding Canada’s Jeremy Weil.

The Road Ahead

The FATF’s February 2025 Plenary highlights the global commitment to combating financial crimes while ensuring inclusive access to financial systems. By updating compliance standards, addressing new threats, and reinforcing international cooperation, the FATF continues to play a pivotal role in maintaining financial integrity worldwide.

For further details on the outcomes of the Plenary, visit the official FATF website.