FATF ¦ Annual Report 2023-2024

FATF Annual Report 2023-2024: Strengthening Global Financial Integrity through Enhanced Standards and International Cooperation

The Financial Action Task Force (FATF) Annual Report for 2023-2024 provides a comprehensive overview of the organization’s activities, achievements, and strategic priorities during the Singapore Presidency under Mr. T. Raja Kumar. The FATF, an independent intergovernmental body established in 1989 by the G7, is dedicated to combating money laundering, terrorist financing, and the financing of weapons of mass destruction proliferation by setting global standards and promoting effective implementation of legal, regulatory, and operational measures.

Over the past year, the FATF has focused on strengthening asset recovery, enhancing beneficial ownership transparency, and regulating virtual assets to ensure criminals cannot profit from illicit activities. Significant progress has been made in revising international standards for asset recovery for the first time since 1990. These revisions provide governments with stronger tools to quickly freeze, confiscate, and recover illicit proceeds, thereby removing financial incentives for crime and facilitating the return of assets to victims and states affected by corruption or tax evasion. The FATF also partnered closely with INTERPOL through the FATF-INTERPOL Roundtable Engagement (FIRE), which brings together operational experts and policymakers to improve global asset recovery efforts.

In addition to asset recovery, FATF advanced standards related to beneficial ownership transparency, particularly of legal arrangements such as trusts. This effort builds on previous initiatives to expose hidden ownership structures often exploited for money laundering and other crimes. Guidance and training have supported many countries in implementing beneficial ownership registries, significantly enhancing financial transparency globally.

The FATF also addressed emerging risks in the global financial system, including cyber-enabled fraud, ransomware attacks, the trade of art and antiquities, fentanyl trafficking, and corruption through citizenship and residency investment schemes. These reports raise awareness and guide member countries in mitigating contemporary threats.

A critical area of work was the implementation of FATF standards concerning virtual assets and virtual asset service providers (VASPs). Despite progress, three-quarters of jurisdictions remain only partially or not compliant with these requirements, creating exploitable gaps for illicit finance. To encourage faster adoption, the FATF published a list identifying jurisdictions with significant VASP activity and their regulatory status.

Bastian Schwind-Wagner_Follow "The FATF remains steadfast in its commitment to combating money laundering, terrorist financing, and the proliferation of weapons of mass destruction through robust international standards and effective global cooperation. The 2023-2024 Annual Report highlights significant progress in asset recovery, beneficial ownership transparency, and regulation of virtual assets, reinforcing the collective efforts of over 200 jurisdictions to safeguard the integrity and stability of the global financial system. Together with its partners and members, the FATF continues to adapt to emerging threats, ensuring that illicit financial flows are identified, disrupted, and prevented to promote a safer and more transparent economic environment worldwide."

The FATF Global Network, consisting of 40 FATF members and nine FATF-Style Regional Bodies (FSRBs) covering over 200 countries and jurisdictions, continues to be vital in enforcing global standards. The report highlights institutional measures taken to strengthen this network’s inclusivity and effectiveness, such as permanent FSRB representation on the FATF Steering Group and annual high-level meetings between FATF and FSRB leadership.

On governance and leadership, the report details the roles of the FATF President and Vice-President and key working groups that drive policy development, evaluations, and risk assessments. The Secretariat’s diverse staff supports these efforts through training programs like the FATF Training Institute in Busan and e-learning platforms that have reached thousands of officials worldwide.

The FATF also undertakes rigorous mutual evaluations of member countries’ anti-money laundering/counter-terrorist financing/counter-proliferation financing (AML/CFT/CPF) frameworks. As of mid-2024, 91% of evaluations in the current cycle have been completed or scheduled for completion by July 2025. The organization maintains strict follow-up processes to ensure countries address identified deficiencies.

In managing high-risk jurisdictions, the FATF’s “grey list” includes countries with strategic AML/CFT deficiencies that require monitoring and action plans. Since July 2023, Bulgaria, Kenya, Monaco, Namibia, and Venezuela were added to this list. Meanwhile, eight countries including Albania and Jordan successfully exited increased monitoring after implementing major reforms.

The report underscores FATF’s commitment to protecting legitimate non-profit organizations from misuse while avoiding overregulation that could hinder their vital work. Updated standards and best practices aim to balance security with preserving civil society activities.

Financially, the FATF’s annual budget stands at approximately €14.3 million for 2024 with staffing costs as the largest expenditure category. Members reaffirmed support for sustainable funding at a Ministerial meeting in April 2024.

In conclusion, the 2023-2024 FATF Annual Report reflects an organization actively adapting to evolving financial crime threats through enhanced standards, global cooperation, increased transparency measures, and capacity building. The FATF remains central in safeguarding the integrity of the international financial system by driving collective action against illicit finance globally.

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• FATF ¦ FATF Annual Report 2023-2024 ¦ Link