FATF Annual Report 2023-2024

The Financial Action Task Force (FATF) Annual Report 2023-2024 outlines work by the FATF to prevent the abuse of the international financial system, and strengthen foundations for sustainable and more inclusive economic development.

The second year of the Singapore Presidency of T. Raja Kumar saw significant progress made by the FATF in its fight against financial crime, including: 

• Strengthening global compliance with the FATF standards – driving preparation for the next round of mutual evaluations, which will be more timely, but also more risk-based, and with a greater focus on effectiveness; and agreeing a more risk-based criteria for identifying countries with strategic weaknesses in the next round.
• Transparency and beneficial ownership – improving global transparency standards and supporting countries with guidance and training on preventive measures, leading to numerous countries committing to implement beneficial ownership registries.
• Amendments to the FATF Standard on Non-Profit Organisations (NPO) - ensuring that measures to protect and safeguard the NPO sector are targeted and proportionate and that governments do not suppress civil society through overapplication of the FATF standards.
• Global Network – prioritising activities to deepen the relationship with FATF regional partners, the FATF-Style Regional Bodies. 
• Women in FATF and the Global Network – promoting gender inclusivity through a new initiative to inspire the next generation of women leaders. 
• Responding to risks to the Global Financial System – a continued focus on identifying emerging and priority risks, including reports on the cyber-enabled fraud landscape and the exploitation of crowdfunding platforms for terrorism financing, as well as analysis on ransomware and on corruption through the misuse of citizenship and residency by investment schemes. 
• Asset Recovery - a substantial shift in the focus on asset recovery globally, with the FATF adopting changes to its international standards on asset recovery for the first time since its creation, and working in close partnership with INTERPOL to support operational application. 
• Virtual assets – for the first time, publishing a list of jurisdictions with materially important virtual asset service provider (VASP) activity and the steps they have taken to encourage and implement global implementation of the FATF’s requirements.