25 October 2024
FATF ¦ Outcomes FATF Plenary, 23-25 October 2024
FATF October 2024 Plenary: New Assessments, Inclusion Push, and Evolving AML/CFT Priorities
The first Financial Action Task Force (FATF) Plenary chaired by Elisa de Anda Madrazo of Mexico closed in Paris on 25 October 2024, marking a pivotal moment for the global AML/CFT/CPF agenda. Delegates from over 200 jurisdictions and international organizations convened for three days to conclude the fourth assessment cycle, update monitoring lists, advance financial inclusion work, and set direction for the next phase of more focused, risk-based mutual evaluations.
Fourth-Round Assessments Conclude: Argentina and Oman Approved
The Plenary approved the final two mutual evaluation reports of the fourth cycle: Argentina (a joint FATF–GAFILAT assessment) and Oman (a joint FATF–MENAFATF assessment).
Argentina has strengthened its AML/CFT/CPF framework since 2010, with notable gains in domestic cooperation and coordination. However, the country needs to sharpen its understanding of money laundering and terrorist financing risks — particularly around corruption and informal financial services — boost prosecutions in line with its risk profile, enhance its approach to targeted financial sanctions related to proliferation financing, and reinforce supervision and regulation for certain sectors.
Oman shows robust technical compliance and improvements in financial intelligence use, international cooperation, and implementation of targeted financial sanctions for proliferation financing. To achieve greater effectiveness, Oman should deepen its understanding of ML risks, increase the scale and quality of ML investigations and prosecutions consistent with risk, strengthen confiscation outcomes, protect legal persons from misuse, and enhance risk-based supervision.
Both reports will be published following the FATF’s quality and consistency review.
Monitoring Updates: Senegal Exits, New Additions Enter
Senegal was removed from FATF’s increased monitoring list after a successful on-site visit confirmed it had completed its action plans within agreed timelines. While no longer under increased monitoring, Senegal will continue to work with GIABA to consolidate gains across its AML/CFT/CPF regime.
At the same time, the Plenary added Algeria, Angola, Côte d’Ivoire, and Lebanon to the jurisdictions under increased monitoring. These countries have committed to action plans to address identified strategic deficiencies and will be working to resolve them within set timeframes.
The FATF also updated its statements on high-risk and other monitored jurisdictions. The suspension of the Russian Federation remains in effect, with the FATF reiterating the need for vigilance against attempts to circumvent measures taken against Russia.
Sharper Focus on Risk, Inclusion, and National Assessments
The risk-based approach remains central to FATF’s standards. Members approved updated guidance on national risk assessments, reflecting lessons learned since 2013. The revised guidance is designed to help countries — including lower-capacity jurisdictions — identify, assess, and mitigate illicit finance risks more effectively, leveraging the experiences of more than 90 countries across the Global Network.
In parallel, the Plenary agreed to release for public consultation proposed revisions to the standards — primarily Recommendation 1 — to better support financial inclusion. This follows FATF’s stocktake on unintended consequences, which found countries often underuse the flexibility of the risk-based approach. The revisions would encourage appropriate simplified measures where risks are assessed as lower, with final guidance targeted for 2025.
Expanding Voices: Guest Jurisdictions and Stronger Network Cohesion
Under Mexico’s presidency, the FATF is pushing to amplify the contributions of FATF-Style Regional Bodies (FSRBs) and enhance coherence across the Global Network. Two guest jurisdictions — Senegal and the Cayman Islands — were invited to participate in the Plenary and Working Groups for the first time. This initiative, designed to rotate annually, aims to broaden perspectives and participation from regions with fewer FATF members, while also strengthening support for consistent, high-quality evaluations across the network.
Technical Priorities: Cross-Border Payments, TF/CPF Risks, and Sectoral Reviews
Members discussed standards changes tied to the evolution of cross-border payment systems and shifts in industry norms. Work advanced on assessing current terrorist financing and proliferation financing risks, reflecting rapidly changing threat landscapes. FATF also highlighted the value of its horizontal review of DNFBP (Designated Non-Financial Businesses and Professions) technical compliance in relation to corruption, with follow-up discussions slated for the next meeting to spur necessary reforms.
Protecting Civic Space and Children: Guardrails and Detection Efforts
The Plenary launched a project to review FATF processes to help ensure countries do not misuse FATF requirements to restrict the activities of non-profit organizations. In addition, FATF is developing a framework to detect and prevent online child sexual exploitation by focusing on financial indicators and transaction patterns that can signal suspicious behavior, supporting global efforts to protect vulnerable populations.
Information Sharing with Privacy in Mind
Members initiated new work to improve information sharing for AML/CFT/CPF purposes in a way that aligns with diverse national data protection and privacy regimes. This project brings together DPP experts, the private sector, and international partners to build practical pathways for compliant, effective collaboration.
Diversity and Inclusion: Strengthening the Talent Pipeline
Building on the Women in FATF and the Global Network (WFGN) initiative launched during the Singapore Presidency, the Plenary assessed progress on gender diversity and approved steps to deepen inclusivity. A second mentoring program will be rolled out to support broader participation and leadership across the Global Network.
What This Means for Financial Crime Compliance
The close of the fourth evaluation cycle and the pivot to more targeted, risk-based mutual evaluations signal an era of sharper expectations on effectiveness over form. Countries and institutions should anticipate greater scrutiny on outcomes — investigations, prosecutions, confiscations, and sanctions implementation — aligned with risk profiles.
The move to revise Recommendation 1 and reinforce financial inclusion reflects a pragmatic shift: using simplified measures where risk is demonstrably low, without weakening safeguards. Compliance teams should prepare to recalibrate controls to be more proportionate and evidence-based, while maintaining robust risk assessments and monitoring.
For jurisdictions newly added to increased monitoring, immediate traction on action plans will be essential. For those exiting, like Senegal, the task is to sustain and institutionalize gains. Across the board, the emphasis on cross-border payments, evolving TF/CPF risks, legal person misuse prevention, and DNFBP supervisory upgrades underscores the need for continuous model updates, data-driven risk assessments, and tighter public–private partnerships.
Finally, the focus on protecting NPO activity, improving privacy-consistent information sharing, and preventing online child sexual exploitation highlights a more nuanced, balanced FATF agenda — one that seeks to uphold financial integrity while guarding fundamental rights and societal priorities.
Dive deeper
- FATF ¦ Outcomes FATF Plenary, 23-25 October 2024 ¦ Link
- FATF Video ¦ FATF Plenary October 2024 - Press Conference ¦ Link (YouTube)