On 19 April 2022, the Financial Action Task Force (FATF) published a report providing an overview of the state of global efforts to tackle money laundering, terrorist and proliferation financing. The report finds that in terms of laws and regulations, 76% of countries have now satisfactorily implemented the FATF’s 40 Recommendations. This is a significant improvement in technical compliance, which stood at just 36% in 2012. However, the report also highlights that many countries still face substantial challenges in taking effective action in line with the risks they face. This includes difficulties in investigating and prosecuting high-profile cross-border cases and preventing anonymous shell companies and trusts being used for illicit purposes.
The FATF also reports that it has made certain changes to its mutual evaluations. In the forthcoming fifth round of mutual evaluations, the changes include:
- A significantly shorter mutual evaluation cycle, so that countries are assessed more frequently.
- Greater emphasis on the major risks and context to ensure that countries focus on the areas where the risks are highest.
- A results-orientated follow-up assessment process, which will focus on specific actions to tackle money laundering, terrorist financing and the financing of weapons of mass destruction.