The Middle East and North Africa Financial Action Task Force (MENAFATF) has been indispensable in coordinating regional efforts to curb and combat money laundering (ML), terrorist financing (TF), and the financing of proliferation. Established in 2004, MENAFATF serves as a platform for member countries to participate, collaborate, share best and innovative practices, and accord with international standards set by the Financial Action Task Force (FATF). In recent years, the leadership of MENAFATF has taken momentous steps to activate and implement the group’s strategic plans, aiming to enhance the effectiveness of AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) systems across the MENA region.
Recent Leadership Meetings and Strategic Initiatives
In November 2024, the Kingdom of Saudi Arabia, represented by the Saudi Central Bank (SAMA), hosted the 39th Plenary Meeting of MENAFATF in Riyadh. Chaired by the Republic of Yemen, the meeting brought together experienced and senior officials and observers from member countries, as well as regional and international organizations involved in AML/CFT efforts. The main topics discussed included the results of the Financial Intelligence Units Forum (FIUF), the Operational Experts Forum on Terrorist Financing (OFTF), and the Risk Committee. Remarkably, a conference was held on the sidelines to mark the 20th anniversary of MENAFATF, focusing on the latest developments in AML/CFT and combating proliferation financing. The conference featured various important sessions on the adoption of international standards, lessons learned from mutual evaluations, the application of FATF standards to virtual assets and emerging technologies, and best practices in asset tracking and recovery.
Following the plenary, in January 2025, MENAFATF’s leadership convened in the Hashemite Kingdom of Jordan to develop executive plans for implementing their collaborative strategic priorities under the presidencies of the UAE and Jordan. The meeting was chaired by Samia Abu Sharif, Head of the Anti-Money Laundering and Terrorist Financing Unit in Jordan, alongside Vice-Chairman Hamed Saif Al-Zaabi, Secretary-General of the UAE’s National Committee for Combating Money Laundering and Terrorist Financing. The joint priorities, building on the achievements of the Yemeni presidency in 2024, focus on:
Ameliorating the Role of MENAFATF in Mutual Evaluations: Preparing and implementing the third round of the mutual evaluation process while providing support to member states undergoing evaluation.
Toughening Governance Framework: Improving the group’s governance to guarantee clearer and more targeted procedures in achieving FATF recommendations.
Cultivating International Cooperation: Encouraging communication and coordination with international and regional partners, as well as other regional bodies, in alignment with MENAFATF’s strategic and operational plans.
Addressing Emerging Risks: Intensifying efforts to implement international standards by identifying and understanding the risks, trends, and methods associated with ML, TF, and the financing of proliferation.
Strategic Priorities and Implementation Plans
The strategic priorities set by MENAFATF’s leadership are curated to address both existing challenges and emerging threats in the financial landscape of the MENA region. By focusing on mutual evaluations, the group aims to ensure that member countries adhere to international AML/CFT standards, thereby enhancing the overall effectiveness of regional efforts. Strengthening the governance framework is expected to streamline decision-making processes and improve the implementation of strategic initiatives. Nurturing international cooperation will facilitate the exchange of information and best practices, while addressing the upcoming modern and traditional risks will help member countries to proactively counter new methods of financial crime.
Enhancing Mutual Evaluations
Mutual evaluations are a bedrock of the FATF framework, serving as peer reviews to assess a country’s compliance with international AML/CFT standards. MENAFATF’s emphasis on enhancing its role in preparing and implementing the third round of mutual evaluations accentuates the group’s commitment to maintaining rigorous oversight and support for its members. By providing technical assistance and guidance, MENAFATF aims to ensure that member countries are well-prepared for evaluations, leading to more accurate assessments and the identification of areas for improvement.
Strengthening Governance Framework
A stringent governance framework is mandatory for the effective functioning of any organization. MENAFATF’s focus on strengthening its governance involves refining its internal structures and processes to ensure clarity, efficiency, and accountability. This includes updating procedural guidelines, enhancing transparency in decision-making, and ensuring that the group’s activities are well aligned with its strategic objectives. By doing so, MENAFATF seeks to improve its responsiveness to the evolving AML/CFT landscape and the needs of its member countries.
Fostering International Cooperation
In a cosmopolitan world, international cooperation is crucial in combating financial crimes that often transcend national borders. MENAFATF’s strategic priority to encourage cooperation, communication, and coordination with international and regional partners reflects its recognition of the importance of collaborative efforts. By building strong partnerships with organizations such as FATF and other regional bodies, MENAFATF aims to facilitate the sharing of information, resources, and best practices, thereby enhancing the collective capacity to address AML/CFT challenges.
Addressing Emerging Risks
The financial terrain is continually evolving and growing, with new technologies and methods presenting both opportunities and risks. MENAFATF’s commitment to identifying and understanding the risks, trends, and methods associated with ML, TF, and the financing of proliferation is vital in ensuring that member countries remain vigilant and proactive. This involves conducting regional risk assessments, monitoring emerging trends such as the use of virtual assets, and developing strategies to mitigate identified risks. By staying ahead of emerging threats, MENAFATF aims to protect the integrity of the financial systems in the MENA region.
The leadership of MENAFATF has established a strong commitment to activating the group’s strategic plans, with a focus on enhancing mutual evaluations, strengthening governance, encouraging international cooperation, and addressing emerging risks. Through these initiatives, MENAFATF aims to bolster the effectiveness of AML/CFT efforts across the MENA region, contributing to the global battle against financial crimes.
Read more on MENAFATF official website.
