The Financial Action Task Force (FATF) convened its second Plenary under the leadership of President Elisa de Anda Madrazo from Mexico, concluding on February 21, 2025. Delegates from over 200 jurisdictions and international organizations engaged in three days of in-depth discussions, resulting in several pivotal decisions to strengthen global financial integrity. Highlights of the first 2025 Plenary include decisions on issues set out below:
Enhancing Financial Inclusion through Revised Standards
A significant outcome of the Plenary was the agreement to amend the FATF Standards to better support a risk-based approach and promote financial inclusion. This initiative, a cornerstone of the Mexican Presidency, seeks to balance the mitigation of financial crimes with the need to provide access to financial services for underserved populations. To facilitate the implementation of these revised standards, the FATF will initiate a public consultation, inviting feedback from a broad spectrum of stakeholders.
Addressing Online Child Sexual Exploitation
The Plenary finalized a comprehensive report focused on combating financial flows associated with online child sexual exploitation. Scheduled for publication next month, this report aims to equip member countries with effective tools and strategies to detect and disrupt financial activities that enable such heinous crimes, thereby enhancing protections for vulnerable children worldwide.
Updates on Jurisdictions under Monitoring
These are jurisdictions that are actively working with the FATF to address strategic deficiencies in their regime on anti-money laundering, counter-financing of terrorism and proliferation financing (AML/CFT/PF). Once a country is placed under increased monitoring or what is often referred to as the “grey” list, the country is obliged to take swift and immediate steps based on agreed timelines to address the identified weaknesses in its laws and the effectiveness of the implementation framework.
As at February 2025, and based on its ongoing effort to monitor and assist jurisdictions with deficiencies in their anti-money laundering and counter-terrorist financing frameworks, the FATF made several key updates:
- Removal from Increased Monitoring: The Philippines has been removed from the ‘grey list’ following a successful on-site evaluation, reflecting significant improvements in its financial regulatory systems. However, the following jurisdictions remain on the list: Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, Cote D’Ivoire, Croatia, Democratic Republic of Congo, Haiti, Kenya, Lebanon, Mali, Monaco, Mozambique, Namibia, Nigeria, Philippines, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam, and Yemen.
- Additions to Increased Monitoring: Laos and Nepal have been added to the ‘grey list,’ indicating the need for enhanced due diligence and implementing action plans to address identified deficiencies.
- Continued Suspension: The suspension of the Russian Federation’s membership remains in effect, as per the decision outlined in February 2024.
Welcoming New Participants
As part of an initiative to foster inclusivity and consider regional specificities, the FATF has invited Kenya to participate in its Plenary and Working Group meetings. This move aims to enhance collaboration and the exchange of best practices in combating financial crimes.
These decisions underscore the FATF’s commitment to adapting its strategies to address evolving global financial crime challenges while promoting inclusive financial systems.
For a detailed overview of the Plenary outcomes, please visit the official FATF publication:
https://www.fatf-gafi.org/en/publications/Fatfgeneral/outcomes-fatf-plenary-february-2025.html
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