The FATF plenary meeting took place in Paris between 21-23 June 2023 with delegates from over 200 jurisdictions from the Global Network and observers from international organizations.
The following topics were discussed:
🔎 𝗠𝘂𝘁𝘂𝗮𝗹 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗟𝘂𝘅𝗲𝗺𝗯𝘂𝗿𝗴:
✔️ Luxemburg, as a regional and international financial centre has a high level of technical compliance with the FATF recommendations. Its AML/CFT regime is delivering good results.
✔️ Luxemburg has a good understanding of the ML/TF risk it faces.
✔️ The country has achieved robust domestic co-operation and co-ordination in the use of financial intelligence, access to beneficial ownership information and co-operation with its international partners.
𝘈𝘳𝘦𝘢𝘴 𝘧𝘰𝘳 𝘪𝘮𝘱𝘳𝘰𝘷𝘦𝘮𝘦𝘯𝘵: Detection investigation and prosecution of more complex money laundering cases, risk-based supervision of its non-financial sector, develop its understanding of terrorist financing and apply proportionate and dissuasive sanctions for non-compliance to the financial and non-financial sectors.
🌏 𝗛𝗶𝗴𝗵-𝗿𝗶𝘀𝗸 𝗮𝗻𝗱 𝗼𝘁𝗵𝗲𝗿 𝗺𝗼𝗻𝗶𝘁𝗼𝗿𝗲𝗱 𝗷𝘂𝗿𝗶𝘀𝗱𝗶𝗰𝘁𝗶𝗼𝗻𝘀
Additions to the grey-list:
No addition to the black-list.
₿ 𝗧𝗮𝗿𝗴𝗲𝘁𝗲𝗱 𝗨𝗽𝗱𝗮𝘁𝗲 𝗼𝗻 𝘁𝗵𝗲 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝘁𝗵𝗲 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 𝗼𝗻 𝗩𝗶𝗿𝘁𝘂𝗮𝗹 𝗔𝘀𝘀𝗲𝘁𝘀
Global implementation of the standards is considered poor. ⤵️ Almost ¾ of jurisdictions are partially compliant or non-compliant with the standards.
Many jurisdictions have not implemented fundamental requirements, and more than half have not implemented the Travel Rule. Lack of regulation creates loopholes for exploitation of the sector by criminals.
👮♂️ 𝗙𝗔𝗧𝗙 𝗔𝘀𝘀𝗲𝘁 𝗥𝗲𝗰𝗼𝘃𝗲𝗿𝘆
The FATF aims to provide a new suite of tools which countries should use to effectively freeze, seize, and confiscate criminal property, both domestically and through international cooperation.
💼 𝗙𝗔𝗧𝗙 𝗪𝗼𝗿𝗸 𝘁𝗼 𝗖𝗼𝗺𝗯𝗮𝘁 𝗖𝗼𝗿𝗿𝘂𝗽𝘁𝗶𝗼𝗻
The Plenary adopted an internal tool to combat corruption. The FATF members also discussed the progress performed on the misuse of citizenship and residency by investment schemes.
🏴 𝗡𝗼𝗻-𝗣𝗿𝗼𝗳𝗶𝘁 𝗢𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝘀 (𝗡𝗣𝗢𝘀)
The FATF is working on potential revisions to the Recommendation 8 aiming to protect NPOs from abuse for terrorist financing without disrupting or discouraging legitimate NPO activities.
The FATF will release a document on the above for public consultation.
See official announcement here