The Financial Action Task Force (FATF) concluded its fifth Plenary session under the Mexican presidency last week in Mexico. The organization, which sets global standards for anti-money laundering and combating terrorist and proliferation financing (AML/CFT/CPF), announced several measures and reports addressing ongoing risks and industry challenges.
During the session, the FATF reaffirmed concerns regarding Iran's role in terrorist and proliferation financing. Iran remains on the FATF blacklist, with the organization reminding all countries to implement United Nations Security Council Resolutions that were reimposed due to Iran's continued non-compliance with nuclear agreements. The FATF also urged all jurisdictions to introduce further countermeasures targeting correspondent banking, digital asset transactions, and business relationships with Iran.
The Plenary approved two reports focused on digital assets. One report evaluates illicit finance risks from stablecoins and unhosted wallets while suggesting ways to address these vulnerabilities. Another report discusses good practices and obstacles in mitigating risks linked to offshore digital asset service providers. The United States acknowledged the importance of these efforts, stating: "Digital assets play a crucial role in global innovation and economic development, and the United States appreciates the FATF’s efforts to prevent abuse of this critical industry."
Additionally, the FATF adopted Mutual Evaluation Reports for Austria, Italy, and Singapore. These documents will be made available on the FATF website and present peer-reviewed assessments of each country's AML/CFT/CPF legal frameworks as well as their effectiveness in applying those standards. The United States is scheduled for its own assessment against FATF standards in 2026.
Looking ahead, the FATF agreed to hold a ministerial meeting in April 2026 in Washington, D.C., where priorities for the next two years will be discussed. It was also confirmed that the United Kingdom will assume the presidency of the FATF starting July 2026.
Further details can be found by reading the Outcomes of the FATF Plenary.
