FATF ¦ Outcomes FATF Plenary, 11-13 February 2026

FATF Plenary in Mexico City Strengthens Global Fight Against Illicit Finance

The Financial Action Task Force (FATF) concluded its fifth Plenary under the Mexican Presidency in Mexico City on 13 February 2026, delivering a suite of decisions aimed at tightening global defenses against money laundering, terrorist financing and proliferation financing. Delegates from the FATF’s Global Network of more than 200 jurisdictions and observers met for three days of discussions that balanced country assessments, technological risk responses and strategic planning for the next biennium.

Mutual evaluations raise the bar for effectiveness

The Plenary adopted mutual evaluation reports for Austria and Italy, and a joint FATF–Asia/Pacific Group evaluation for Singapore, under the FATF’s new round of assessments. These reports assess countries’ effectiveness in preventing and disrupting illicit finance and their technical compliance with FATF Recommendations. Publication is scheduled for April–May 2026 after a global quality and consistency review.

The new assessment approach places greater emphasis on measurable results in combating illicit finance. Under the updated framework, assessed countries receive a timebound Roadmap of Key Recommended Actions to address strategic deficiencies within three years. This change pushes jurisdictions toward concrete improvements in outcomes rather than focusing solely on technical measures.

Adding jurisdictions under increased monitoring

At this Plenary the FATF added Kuwait and Papua New Guinea to the list of jurisdictions under increased monitoring. Placement on this list indicates that a jurisdiction has committed to an Action Plan with agreed timeframes to address strategic deficiencies. Increased monitoring is a tool to help jurisdictions accelerate remedial work and align their frameworks with international standards.

The FATF also updated its public statement on Iran within the High-Risk Jurisdictions subject to a Call for Action, reaffirming the mechanism used when serious strategic deficiencies pose systemic risks to the international financial system.

Bastian Schwind-Wagner _Follow

"The FATF’s Mexico City Plenary reinforced a results-driven approach to combating illicit finance, prioritizing cyber-enabled fraud and virtual-asset risks while expanding oversight through mutual evaluations and increased monitoring. These measures aim to close regulatory gaps and improve international cooperation to reduce opportunities for criminals to exploit cross-border financial channels.

As work proceeds toward publication of reports and the FATF Ministerial meeting in April, jurisdictions and the private sector should accelerate efforts to strengthen controls, share intelligence, and implement the Roadmaps of Key Recommended Actions. Enhanced supervision of virtual asset activities and a sustained focus on fraud recovery will be critical to protecting victims and preserving the integrity of the global financial system."

Prioritizing cyber-enabled fraud

Recognizing the accelerating scale and sophistication of online fraud, the FATF approved a paper on cyber-enabled fraud that signals a priority shift across the AML/CFT/CPF community. The paper highlights the growing harm to victims and the ways digital innovations are being leveraged to increase the speed and reach of fraudulent activity. The FATF committed to focusing on fraud over the coming years, encouraging governments and private sector partners to adopt innovative techniques to prevent fraud, recover victims’ assets and pursue perpetrators across borders.

New work on virtual assets and offshore risks

Technology-driven financial services remain a central concern. The Plenary approved two reports on virtual assets to be published next month that aim to help jurisdictions manage emerging risks while supporting responsible innovation. The first report, Understanding and Mitigating the Risk of Offshore Virtual Asset Service Providers (oVASPs), will examine how regulatory and supervisory gaps are exploited by criminals when virtual asset services operate from offshore or lightly regulated jurisdictions, and will recommend measures to address those gaps.

The second, a Targeted Report on Stablecoins and Unhosted Wallets, evaluates risks associated with stablecoins – whose scale and cross-border use have grown rapidly – and the movement of value through peer-to-peer transactions and unhosted wallets. The report will provide recommendations for governments and the private sector to mitigate risks while considering the operational realities of virtual asset markets.

Setting strategic priorities for 2026–2028

Delegates discussed and agreed specific focus areas to guide the FATF’s work for the next biennium. These Strategic Priorities will be presented for ministerial endorsement at the FATF Ministerial meeting in April. The priorities are expected to reflect the Plenary’s emphasis on cyber-enabled fraud, virtual asset risks, stronger mutual evaluation outcomes, and greater cohesion across the FATF Global Network.

Leadership transition and network cohesion

The Plenary appointed Mr. Giles Thomson of the United Kingdom as the incoming FATF President for the term July 2026–June 2028, following consultations with member delegations. Mr. Thomson, who has served as Vice-President since 1 July 2025, will take office on 1 July 2026, succeeding Ms. Elisa de Anda Madrazo.

To strengthen coordination across the FATF Global Network, the Plenary agreed measures to enhance the participation and voice of FATF-Style Regional Bodies in the FATF’s work. These measures aim to improve cohesion across more than 200 jurisdictions and ensure consistent delivery on shared objectives to counter illicit finance.

Ongoing membership and engagement matters

The FATF suspension of the Russian Federation remains in effect. The Plenary’s decisions continue to reflect a dual approach: pressing jurisdictions to close strategic weaknesses while equipping the global network with tools and intelligence to respond to rapidly evolving threats.

Implications for practitioners and policymakers

The outcomes from Mexico City underscore a clear trend: the FATF is reinforcing outcome-based assessment, elevating fraud and virtual asset risks, and seeking stronger cooperation across regional bodies. For compliance teams, policymakers and financial institutions, the Plenary’s decisions signal an expectation of heightened scrutiny around fraud prevention controls, cross-border virtual asset service provider relationships, stablecoin flows and unhosted wallet activity. Countries placed under increased monitoring should expect sustained engagement and clear timelines to address deficiencies, while the private sector should prepare for tighter regulatory and supervisory focus on virtual asset channels that can be exploited for criminal finance.

As the FATF gears up for the ministerial meeting in April and publications in the coming weeks, the global AML/CFT/CPF community will be watching how these new priorities translate into concrete rules, supervisory action and operational cooperation to ensure that criminals find it harder to profit from illicit activity.

Dive deeper

• FATF ¦ Outcomes FATF Plenary, 11-13 February 2026 ¦ Link
• FATF ¦ Jurisdictions under Increased Monitoring - 13 February 2026 ¦ Link
• FATF ¦ High-Risk Jurisdictions subject to a Call for Action - 13 February 2026 ¦ Link