The Financial Action Task Force (FATF) convened its first plenary of 2025 from February 19 to 21, marking the second session under the presidency of Elisa de Anda Madrazo. From over 200 jurisdictions, delegates discussed pivotal global priorities for curbing money laundering, terrorist financing, and proliferation financing.
Revision: Grey List
Important adjustments were made to the FATF’s list of jurisdictions under increased monitoring, commonly known as the “grey list”:
Additions
Lao People’s Democratic Republic and Nepal were added due to strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CFT) regimes.
Removal
The Philippines was removed from the grey list after making considerable progress in addressing identified AML/CFT deficiencies.
Strategic Initiatives
The plenary introduced several initiatives aimed at enhancing global financial integrity:
Promoting Financial Inclusion
Recognizing that approximately 1.4 billion people across the world lack access to banking services, the FATF revised its standards to support financial inclusion. The changes encourage a risk-based approach, letting financial institutions to implement simplified measures where risks are lesser, thereby facilitating broader access to financial services.
Combating Online Child Sexual Exploitation
An upcoming report will provide initiatives to detect and disrupt financial flows related to online child sexual abuse material. The report focuses on using financial intelligence to identify offenders and enable early intervention.
Public Consultations
The FATF announced public consultations on crucial revisions to Recommendation 16, aiming to improve payment transparency by standardizing originator and beneficiary information in payment messages. This effort aims to balance the facilitation of faster, more affordable payments with stringent defenses against illegal finance.
Leadership and Collaboration
The plenary also addressed leadership transitions and efforts to diversify perspectives within the FATF network:
Appointment of New Vice-President
Giles Thomson from the United Kingdom was selected as the next FATF Vice-President, succeeding Jeremy Weil from Canada.
Thomson, currently serving as Director of the Office for Financial Sanctions Implementation and Economic Crime at HM Treasury, will assume the role on July 1, 2025, for a two-year term.
Guest Jurisdiction Initiative
Kenya joined the Cayman Islands and Senegal as guest jurisdictions in this plenary session, reflecting the FATF’s commitment to broadening the diversity of perspectives and backgrounds within its discussions.
Women in FATF and the Global Network (WFGN) Initiative
A successful event was organized to support the WFGN program, emphasizing on advancing women’s careers within the FATF and its worldwide network. Proposals discussed include the launch of the second edition of the FATF Mentoring Programme, seeking to provide guidance and support for female professionals in the field.
These developments highlight the FATF’s continuous efforts to adapt to evolving challenges and promote an inclusive environment in the global financial system.
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