On 29 October 2024, the Financial Action Task Force (FATF) published the outcomes of its plenary on 23 – 25 October 2024.

Key points from the plenary include that FATF:

  • Approved the last two assessment reports in its fourth cycle of assessments, the joint FATF-GAFILAT assessment of the Argentine Republic (Argentina) and the joint FATF/MENAFATF assessment of the Sultanate of Oman (Oman).
  • Removed Senegal from its increased monitoring following a successful on-site visit and updated its statements on ‘high-risk and other monitored jurisdictions’.
  • Added Algeria, Angola, Côte d’Ivoire and Lebanon to the list of jurisdictions subject to increased monitoring.
  • Approved new guidance on national risk assessments to support countries to understand the illicit finance risks they face.

FATF also issued a public consultation on proposed changes to the standards on anti-money laundering / countering the financing of terrorism and financial inclusion. The revisions focus on Recommendation 1 and its Interpretive Note, with corresponding changes to Recommendations 10 and 15 and related Glossary definitions. In particular, FATF is considering:

  • Replacing the term “commensurate” with “proportionate” in Recommendation 1, in order to clarify how these concepts should be applied in the context of a risk-based approach; to set clearer expectations with regard to simplified measures; and to align the FATF’s language more closely with that of financial inclusion stakeholders and frameworks. For these purposes, the term “proportionate” is defined as follows: “In the context of the risk-based approach adopted by the FATF Recommendations, a proportionate or commensurate measure or action is one that appropriately corresponds to the level of identified risk and effectively mitigates the risks”. 
  • Amendments to require supervisors to “review and take into account the risk mitigation measures undertaken by financial institutions/DNFBPs”, to avoid overcompliance resulting from an only partial understanding of the risks, and also to consider proportionality in the engagements with them.
  • Changes to simplified measures in lower risk situations in that it proposes to replace “countries may decide to allow simplified measures” with “countries should allow and encourage simplified measures”.
  • Updates to “non-face-to-face customer-identification and transactions” as an example of potentially higher-risk situations, by adding a qualification (“unless appropriate risk mitigation measures have been implemented”) to reflect technological advancements in digital identity systems that may reduce the risks associated with non-face-to-face interactions, and recognise that in many countries this has become the normal mode of interaction with financial institutions.

The deadline for comments on the consultation is 6 December 2024.