“The urgency of the challenge has become even more acute, with financial crime threats intensifying, evolving and becoming increasingly interconnected”
ened its toolkit, which is anchored in the FATF Standards, by reinforcing the global asset recovery framework, improving the safety and security of cross-border payments, and deepening the understand- ing of emerging and evolving risks. It has done so by working in close partnership with the nine FATF-Style Regional Bodies to leverage risk insights from across its Global Network. Yet despite this progress, significant gaps in implementation continue to leave the global financial system exposed. Through our peer review assessments, we consist- ently identify weaknesses in countries’ ability to translate the standards into effective action. For instance, a compre- hensive assessment issued last year found that 69% of jurisdictions assessed by the FATF and the Global Network have major structural deficiencies in investigating, prosecuting and securing convictions for terrorist financing cases. Closing these gaps is central to the FATF’s work, which aims to ensure that countries address loopholes through effec- tive implementation of the FATF Standards worldwide. The risk‑based approach is the backbone of the FATF Standards, ensuring that global efforts are targeted and proportionate, with resources and responses focused on where risks are highest. THE NEED FOR COORDINATED ACTION A clear global picture of risks is essen- tial. Recent reports by the FATF drew on almost 100 submissions from across the Global Network to highlight emerging risks relating to virtual assets – such as how stablecoins can be misused by money launderers or terrorist financiers, or how offshore virtual asset service providers (or oVASPs) can be exploited to conceal proceeds from scam compounds. The work sets out global best practices for countries and also the private sector.
Such work includes the responsible use of technological innovation to freeze assets through smart-contract functions in stablecoins, or how public-private collabo- ration can support early detection of oVASP operations. With financial crime being inherently borderless, everyone needs to stay ahead of the curve of criminals. Our mutual evaluation and follow-up processes mobi- lise resources to support countries to strengthen their defences and put in place measures that boost security and sustaina- ble economic development. With near global commitment to imple- ment the FATF Standards, all countries must step up their efforts. France’s contin- ued leadership in keeping the fight against financial crime high on the agenda under its G7 presidency is therefore welcome. Paris also provides a powerful reminder of why our work matters: thousands gathered at memorial events last year to remember the family, friends and neigh- bours taken in the fatal attacks in 2015 that gave France cause to establish the ‘No Money For Terror’ conference. The most recent NMFT conference in Paris under France’s G7 presidency, underlined the importance of coordinated and collective action to stay ahead of terrorist financiers. As FATF ministers committed to do ear- lier this year, we must use the sharpened tools we have developed through the FATF Standards to cooperate across borders, share intelligence, and seize and freeze assets in order to address the global surge in terrorist financing, fraud and trans- national organised crime. Our ministers also stressed the impor- tance of international cooperation, as no one country is immune from the threats posed by illicit finance – and no one coun- try can win this fight alone. By harnessing the FATF toolkit, we can step up our defences, prevent abuse of the financial system and keep our citizens safe.
// ELISA DE ANDA MADRAZO Elisa de Anda Madrazo began her two-year term as president of the Financial Action Task Force in July 2024. She was previously vice-president for three years and was also co-chair of the Global Network and Coordination Group. She currently serves as director-general in Mexico’s Ministry of Finance and Public Credit. She also served in the ministry’s Financial Intelligence Unit, including as head attaché to the Mexican embassy in Washington DC.
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