The Financial Action Task Force (FATF) recently concluded a plenary session in Paris, focusing on issues related to proliferation financing and terrorist financing risks. Representatives from the Department of the Treasury were present at this meeting.
Under the leadership of the Mexican presidency, this second plenary discussed various ongoing projects. These included evolving risks associated with proliferation and terrorist financing, financial inclusion efforts, and standards for both domestic and cross-border payments. The FATF agreed to release draft updates for public consultation on these matters. An initiative examining complex proliferation financing and sanctions evasion schemes will also be opened for public input. The Treasury Department expressed its intention to engage with the private sector during these consultations.
The plenary also saw changes endorsed by the FATF that emphasize a risk-based approach to tackling money laundering and terrorist financing risks. This includes ensuring that preventive or mitigation measures align with identified risks.
Additionally, the FATF completed work aimed at combating online sexual exploitation of children—a serious crime affecting vulnerable members of society. A report is set to be published soon, detailing financial typologies linked to financial sextortion and live-streamed child abuse. Contributions from nearly 30 countries have been incorporated into this analysis.
Secretary of the Treasury Scott Bessent stated, “The United States welcomes the FATF’s reaffirmation of countermeasures against Iran for the terrorist financing risk emanating from that country, as well as the continued work to strengthen the international financial system against all illicit finance.”
