FATF countries agree on global action against evolving financial crime threats; remove Bulgaria, Ivory Coast, Congo and Monaco from 'Grey List'

According to a statement of outcomes by FATF member countries, in response to the FATF Ministerial Declaration of April 2026, the Plenary agreed to significantly accelerate the effective implementation of the FATF Standards on virtual assets (VAs) in jurisdictions with materially important VA activity. The Plenary recognised the need to urgently strengthen countries defences against the rising threat posed by the misuse of virtual assets for money laundering, terrorist financing and proliferation financing.

The Plenary approved a report that elevates the fight against fraud and scam compounds as a global priority, providing a strong basis for the FATF and its Global Network to intensify efforts to identify, disrupt and deprive the criminal networks behind these operations of their illicit profits.

This is the first output in the FATFs Roadmap on combatting fraud under the UK Presidency, and will be followed by a wider study and recommendations for how the FATF toolkit can be used to combat fraud more broadly.

The FATF agreed to remove Bulgaria, Cte dIvoire, the Democratic Republic of the Congo and Monaco from its list of jurisdictions under increased monitoring following successful on-site visits, and the FATF updated its statements on jurisdictions under increased monitoring and jurisdictions subject to a call for action.

The jurisdictions are actively working with the FATF and the Global Network to address the strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the jurisdiction has committed to implement an Action Plan to swiftly resolve the identified strategic deficiencies within agreed timeframes.

Following successful on-site visits, the Plenary noted the positive progress in addressing strategic anti-money laundering and countering the financing of terrorism and proliferation financing (AML/CFT/CPF) deficiencies identified during their mutual evaluations. The jurisdictions have completed their Action Plans within agreed timeframes and will no longer be subject to the FATFs increased monitoring process.

The jurisdictions will continue working with their relevant FATF-Style Regional Bodies (FSRBs), GIABA (Cte dIvoire), GABAC and ESAAMLG (Democratic Republic of Congo) and MONEYVAL (Bulgaria, Monaco), to sustain improvements in their AML/CFT/CPF systems.

In its statement on Vietnam, the FATF expressed significant concern with its pace of progress. The FATF will consider next steps if Vietnam does not make tangible improvements to rectify its strategic deficiencies by the next Plenary meeting.

The FATF has updated its public statements on two of the high-risk jurisdictions (Black List), Myanmar and Iran, reinforcing its call on Myanmar to address the extensive fraud and scam activities emanating from the country, and the call on Iran to criminalise terrorist financing and establish a targeted financial sanctions regime in line with the FATF Standards.

And the Plenary agreed to introduce tailored assessments for low-capacity countries, enabling a more risk-based prioritisation of high-impact reforms.

With criminal networks increasingly abusing virtual assets (VAs) for a range of illicit purposes, including fraud, scams, sanctions evasion, money laundering, terrorism financing, and proliferation financing, the Plenary agreed to launch a new targeted review and accelerated follow-up processes to support jurisdictions in addressing gaps in implementation of the FATF Standards on VAs and virtual asset service providers (VASPs) more rapidly.

The targeted review will be based on objective criteria and will focus on jurisdictions with materially important VA sectors on the basis of their assessment status. The results will be published in June and October 2027. The FATF will work closely with relevant jurisdictions to support implementation efforts in this sector, including through ongoing engagement, training, and capacity-building initiatives.

According to the statement, the Plenary approved a new report, to be published next week, which examines the end-to-end illicit financial flows linked to scam compounds, which are among the most rapidly expanding forms of organised crime globally, and contribute significantly to rising levels of fraud and associated proceeds.

By drawing on operational insights from across the FATF Global Network, the report will help authorities to dismantle the increasingly integrated criminal business models and professionalised crime-as-a-service economy that sustain scam compounds around the world.

The report will inform the next phase of the FATFs work on fraud as members consider how to further mobilise the Task Forces full set of capabilities to combat fraud in line with the FATF Ministerial Declaration of April 2026.

The Plenary adopted reports of Mexico and the United States under the new round of mutual evaluations.

These reports assessed the effectiveness of the countries measures to combat money laundering, terrorist financing and proliferation financing, and compliance with the FATF Recommendations. The reports will be published in December 2026, following a quality and consistency review.

Under the new round of mutual evaluations, countries receive a time-bound Roadmap of Key Recommended Actions required within three years to strengthen the effectiveness of their defences against illicit finance.

The FATF will host a Learning and Development Forum in Dallas, Texas, on December 1 and 2, focused on alignment on risk assessment and understanding risk in support of a more risk-based prioritisation of resources, a shift in financial crime risk management and supervisory culture, and greater effectiveness.

This Forum will convene supervisors, financial intelligence units, law enforcement, financial institutions and non-financial institutions from across the world to develop a concrete policy statement to be published shortly afterwards - to support a reinterpretation of how the risk-based approach should be implemented in practice.

As per the statement, the FATF has agreed to continue the suspension of membership for Russia.

The delegates from across the FATFs Global Network of more than 200 jurisdictions and observers gathered in Paris from October 28 to 30. By invitation of the FATF President, representatives of Barbados, Namibia and Thailand participated under their own flags for the first time through the FATF Guest Initiative, which enhances the FATFs global response to fighting financial crime, the statement read. (ANI)