FATF Annual Report 2022 2023.pdf - Coredownload

Annual
Report
2022
2023
Table of
Contents
ABOUT THE FATF 04 Message from the President
The Financial Action Task Force

(FATF) is an independent inter-
10 Asset Recovery - FATF Presidency priority
governmental body that develops
and promotes policies to protect 14 Identifying Risks, Methods and Trends
the global financial system against
money laundering, terrorist
financing and the financing of 24 Setting the International Standards
proliferation of weapons of mass
destruction.
32 Mutual Evaluations
The FATF Recommendations are
recognised as the global anti-
38 High-Risk and Other Monitored Jurisdictions
money laundering (AML) and
counter-terrorist financing (CFT)
standard. 42 The Global Network
For more information about the
FATF, please visit www.fatf-gafi.org
46 Training
This document and/or any map
included herein are without
50 FATF Secretariat and Financial Statement
prejudice to the status of or
sovereignty over any territory, to
the delimitation of international 52 FATF Leadership and Plenary
frontiers and boundaries and to the
name of any territory, city or area.
54 Annex I - FATF Members and Member Organisations
55 Annex II - The Global Network
Photocredits:
58 Annex III - Observer Organisations
©FATF/OECD, Gettyimages
2 FATF Annual Report - 2022-2023

Acronyms
AML Anti-money laundering

APG Asia-Pacific Group on Money Laundering
CFATF Caribbean Financial Action Task Force
CFT Countering the financing of terrorism
DNFBP Designated Non-Financial Businesses and Professions
DPRK Democratic Republic of Korea
EAG Eurasian Group
ESAAMLG Eastern and Southern Africa Anti-Money Laundering Group
FATF Financial Action Task Force
FSRB FATF-Style Regional Body
FT Financing of Terrorism
FUR Follow-Up Report
GABAC Task Force on Money Laundering in Central Africa
GAFILAT Financial Action Task Force of Latin America
GIABA Inter Governmental Action Group against Money Laundering in West Africa
GPFI Global Partnership for Financial Inclusion
ICRG International Co-operation Review Group
IMF International Monetary Fund
ISIL Islamic State of Iraq and the Levant
MENAFATF Middle East and North Africa Financial Action Task Force
MONEYVAL Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering
Measures
and the Financing of Terrorism
OECD Organisation for Economic Cooperation and Development
PF Proliferation Financing
SSB Standard-Setting Bodies
TF Terrorist Financing
UN United Nations
UNSCR United Nations Security Council Resolutions
VA Virtual Asset
VASP Virtual Asset Service Provider
WMD Weapons of mass destruction
FATF Annual Report - 2022-2023 3

Message from the
President
The first year of the Singapore Presidency saw significant progress
made by the FATF in its fight against financial crime. This report
summarises the FATF’s accomplishments to deliver on its mandate
and strategic priorities to prevent criminals, the corrupt and
terrorists from abusing the international financial system and
strengthen the foundations for sustainable and more inclusive
economic development.
The current global context is deeply challenging, marked by

geopolitical tensions and conflict, exacerbated by high inflation and
an economic downturn caused by COVID-19. At a time when safety
and security, sustainable development and global economic recovery
are common objectives, it is more important than ever to ensure
that resources and investments reach their intended goals and help
strengthen economies worldwide. Effective implementation of the
FATFs Global Standards to tackle money laundering and the financing
of terrorism and proliferation (ML/TF/PF) will strengthen financial
integrity, encourage investment and prevent the illicit financial
flows that deprive countries of valuable resources, embolden
criminal organisations and fuel further crime and terrorism. In
our increasingly interconnected world, the fight against ML/TF/PF
requires a strong collective global response. Neither finance nor
crime are limited to national borders, so to achieve our goals on
tackling illicit finance we need to work with all countries. The work
of the Global Network, which consists of the FATF and nine regional
bodies as Associate Members (FATF-Style Regional Bodies, FSRBs),
as well as observers, to achieve these ends is crucial. The Global
Network brings together 206 countries and jurisdictions committed
to implement the FATF Recommendations. This ensures a global
reach of FATF’s work and contributes to inclusive and sustainable
growth in jurisdictions and across regions.
This year, the FATF prioritised work to further reinforce partnerships

with FSRBs. We held a second High-Level meeting with FSRBs Chairs
to discuss important issues that impact global implementation of
our Standards. As our Ministers did at the April 2022 Ministerial
meeting, G20 Ministers also reaffirmed their commitment to deliver

on the strategic priorities of the Global Network in leading global
action to tackle ML/TF/PF at the G20 Finance Ministers and Central
Bank Governors Meeting in February 2023.
The FATF’s Global Standards underpin our work, requiring countries

to put in place robust legal frameworks and legislation to tackle illicit
financial flows. But technical compliance is not enough to ensure
that our economies and societies are protected. Throughout this
year, the FATF focused on increasing the effectiveness of these
global anti-money laundering and counter-terrorist financing
measures. This includes work to address emerging risks, ensuring
innovation in financial services is safe, and reinforcing the standards
in fundamental areas to prevent misuse by criminals and terrorists.
We published updated guidance to help countries implement

the recently revised requirements on beneficial ownership of
legal persons and strengthened the FATF’s Standard on beneficial
ownership of trusts and other legal arrangements, to address
the risk of such arrangements being abused for ML/TF/PF. The
FATF is currently developing guidance to support implementation
of the revised Recommendation on beneficial ownership of legal
arrangements, as well as training to ensure that members and the
Global Network are well informed of the Standards changes and
how it will impact them. The guidance and training will ensure the
swift and consistent implementation of FATF’s tightened beneficial
ownership information rules. With these revisions, the FATF has put
in place a balanced and coherent set of FATF Standards on beneficial
ownership and transparency for both legal persons and legal Top: Participants of the High-Level Meeting with
FATF-Style Regional Bodies (FSRBs) Chairs and
arrangements that will help prevent criminals, sanctions evaders, Executive Secretaries, June 2023.
the corrupt and tax evaders from hiding their criminal activities and
Bottom, from left, INTERPOL Secretary General
assets behind complex corporate structures or arrangements. Jürgen Stock, FATF President T. Raja Kumar,
and Mr K Shanmugam, Singapore’s Minister for
Under my Presidency, the FATF made it a priority to enhance the Home Affairs and Minister for Law, at the FATF-
INTERPOL Roundtable Event, in Singapore.
relevant portions of the FATF Standards on asset recovery. Past
estimates suggest that only 1% of the proceeds of crime are actually
recovered, a major effectiveness gap that needs to be decisively
addressed. Successful asset recovery removes the financial driver

Neither crime nor finance are limited to national borders, so
to achieve our goals on tackling illicit finance we need to work
with all countries.
and motivator for crimes such as human trafficking, fraud, tax

evasion and the drug trade. It is a key preventive strategy to disrupt
criminal networks, safeguard our societies, and return stolen assets
to victims, including governments. This year, the FATF is working on
strengthening its standards to provide countries with a more robust
toolkit to target and confiscate criminal assets. For the first time,
the FATF also directly joined forces with INTERPOL in a strategic
partnership through the FATF-INTERPOL Roundtable Engagement
(the FIRE event) to focus on the strategic and operational changes
necessary to take the profit out of crime. This partnership has strong
potential to secure tangible gains in raising asset recovery outcomes
and the FATF must remain committed to ensuring the success of this
multi-year endeavour.
This year, we also highlighted the urgent need to address the

significant gaps in the global regulation of virtual assets and
virtual asset service providers. Innovation and technology offer
many opportunities. It holds the promise of faster, cheaper and
safer payments solutions. FATF’s objective is to ultimately to ensure
financial inclusion, with AML/CFT compliance issues considered at
the design stage to ensure safety.
FATF reports noted the growing misuse of virtual assets by criminals

to conceal their activities and move illicit proceeds rapidly across
borders. Most jurisdictions are only partially compliant or not
compliant with the FATF’s requirements, such as identifying
customers and their beneficial owners, and reporting suspicious
Top: FATF President T. Raja Kumar at the FATF transactions. To drive greater implementation, the FATF agreed
Plenary, June 2023
on a roadmap to identify countries with materially important
Bottom, from left, Sri Mulyani, Minister of virtual asset activity and support them in strengthening the
Finance of Indonesia, and FATF President T.
Raja Kumar at the G20 Finance Ministers and
implementation of measures that will prevent criminals’ abuse of
Central Bank Governors meeting [photo AFP/ this sector, and to report on our progress in the first half of 2024.
Made Nagi]
On global efforts to make financial services faster, cheaper and

more accessible, promote financial inclusion and to enhance
cross-border payments systems, FATF is focusing on finding
synergies with the G20 and the Financial Stability Board and ensuring

that AML/CFT/CFP is well addressed. We are joining forces with
partners to develop our expertise in relevant areas and deepening
our engagement with private sector and civil society to fully inform
our work and ensure we are up to date on contemporary payment
system developments and other financial sector innovations.
The national AML/CFT frameworks of 89% of FATF Members have

now been assessed in the current 4th round cycle of evaluations.
Each assessment focuses on whether the country is effectively
tackling the risks that they are exposed to and provides targeted
recommendations to help the country address deficiencies in
its national framework. The assessments completed this year
show that countries have generally implemented strong legal and
regulatory frameworks. Six FATF members also received upgrades
following significant reforms to address the weaknesses identified
during their assessments. But most countries still need to do more
to effectively use these frameworks and take meaningful action to
detect and disrupt illicit financial flows.
The FATF also added two new e-learning courses, on targeted

financial sanctions and on virtual assets & virtual asset service
providers, to its comprehensive training programme which aims to
build greater knowledge within the Global Network. FATF’s training
and support programme helps jurisdictions across the global
network implement sound measures to tackle the illicit financial
flows that fuel crime and terrorism. The programme also helps
them prepare for the next round of mutual evaluations, which will
have a much stronger focus on effectiveness. Top:from left, Violaine Clerc, FATF Executive
Secretary, Xolisile Khanyile, Chair of the Egmont
Group of Financial Intelligence Units, FATF
FATF continuously monitors the emerging risks to the financial President T. Raja Kumar and Jerome Beaumont,
Executive Secretary of the Egmont Group of
system and raises awareness about the new methods used to Financial Intelligence Units.
raise, use and move funds with links to criminal activity. This work
can also identify areas where the FATF Standards require further
refining, as was the case with the typologies work on environmental
crime, which led to an amendment in the FATF Standards. This
year, the FATF finalised reports on countering ransomware
financing, money laundering and terrorist financing in the art

and antiquities market and the illicit proceeds generated from
the fentanyl and related synthetic opioids supply chains. These
reports shed light on how criminals continuously look for loopholes
and weaknesses to circumvent AML/CFT/CPF safeguards and how
they have adopted and adapted new technologies to expand the
scope of their criminal activities and facilitate their illicit financial
flows, in particular through the use of virtual assets. These reports
are crucial to raise awareness across the Global Network and help
countries understand the risks they face so that they can implement
the necessary safeguards.
The FATF also made significant progress in ongoing research,

including analysis of money laundering from cyber-enabled
fraud, in collaboration with INTERPOL and the Egmont Group and
the laundering of the proceeds of corruption through misuse of
citizenship and residency by investment programs, in collaboration
with the OECD.
While financial integrity is essential to encourage investment and

promote sustainable economic growth, it must not lead to the
unintended consequence of de-risking and financial exclusion
to avoid all risks, rather than manage them. The FATF is paying
close attention to the unintended consequences of the incorrect
implementation of its standards. During its assessments, the
FATF looks at whether countries are taking a risk-based approach
in their implementation of preventive measures. This year, the
FATF has also advanced on its work to strengthen its standards and
Top: from left FATF President T. Raja Kumar, and prevent the application of disproportionate measures on non-profit
William Hague at the United for Wildlife Global
Summit, October 2022
organisations.
Bottom: from left, Prince William, Prince of
Wales and FATF President T. Raja Kumar at the
United for Wildlife Global Summit, October 2022
As the world continues to face geopolitical instability in a difficult
macro-economic context, the FATF’s work is more important than
ever. But in order for our collective efforts to make a real difference,
we need to build on partnerships, involving both the public and
private sectors. For the FATF, this includes further strengthening
its global and coordinated approach with other international
organisations, such as the IMF, INTERPOL, United Nations and the
Egmont Group.

Partnerships are key to achieving our common goal of protecting
the integrity of the financial system, promoting inclusive and
sustainable growth and protecting safety and security in our society.
However, the past year also saw the continuation of the Russian
Federation’s military invasion of Ukraine. Russia’s actions run counter
to FATF’s principles of promoting security, safety and the integrity
of the global financial system and the commitment to international
cooperation and mutual respect upon which FATF Members have
agreed to implement and support the FATF Standards. In February
2023, the FATF made the unprecedented decision to suspend the
membership of the Russian Federation.
I am pleased to report that under my Presidency, we have initiated

the Women Leaders in AML and the Global Network initiative,
that aims to recognise and strengthen the role of women leaders
in AML and the Global Network. This is meant to be a long-term
project, and amongst other initiatives, we will roll out a mentoring
programme for women leaders across the Global Network.
Finally, I wish to thank Elisa de Anda Madrazo, who has worked

tirelessly for the last three years to assist the FATF Presidency as
a very capable and effective Vice President. During my first year as
President of the FATF, she has been a knowledgeable and reliable
co-pilot. I greatly value her professionalism, passion and expertise
to help advance FATF’s work and, in particular, to contribute to
our shared goal of strengthening the role of women in AML and
the Global Network. I would like to thank her for her invaluable Top: T. Raja Kumar during his inaugural remarks
at the Women leaders in AML and the Global
contributions and look forward to working with her successor, Network Initiative.
Jeremy Weil of Canada, former Head of the Canadian delegation, Bottom: from left, FATF Vice President Elisa de
Anda Madrazo, FATF President T. Raja Kumar,
who assumed the post of Vice President from July 2023. and incoming FATF Vice President Jeremy Weil.
T. Raja Kumar
FATF President

FATF Presidency Priority
Asset
Recovery
Under the FATF Presidency, the FATF has made it a priority to strengthen
asset recovery frameworks aimed at securing more effective results.
Globally, authorities are tracing and recovering only a dismal fraction of
criminal proceeds.
This means that far too often, criminals can enjoy FATF priority. This year, under the Singapore
the proceeds from crimes such as cyber-enabled Presidency, the FATF focused on several initiatives
fraud, human trafficking, environmental crime, drug that aim to improve global asset recovery.
trafficking and tax crimes. Criminal syndicates can
use the proceeds to increase the scale and scope Assessments conducted throughout the Global
of their illegal activities, further jeopardizing safety Network reveal that most countries are not
and security across all our societies. effectively tracing and recovering criminal assets. In
an increasingly interconnected world, transnational
Successful asset recovery removes the incentives crime is growing and criminals often rapidly layer
for criminal activity. It reduces the resources of and transfer proceeds of crime through multiple
criminals and debilitates their ability to fund new jurisdictions to evade detection. Countries will
capabilities and capacity and helps victims of crime need to match the speed and sophistication of
to recover at least some of their losses. It also has criminals to recover these illicit assets, including
development impact by providing much-needed through effectively cooperating with international
resources to governments, which can be spent on counterparts. In addition, multilateral mechanisms
education, healthcare, infrastructure development can provide legal and practical support to judicial
and other social services. Asset recovery should be a and law enforcement authorities.
key pillar of every country’s approach to combating
money laundering and terrorist financing. At their By the end of the 2023, the FATF will strengthen
biennial meeting in 2022, FATF Ministers endorsed its Recommendations to require countries to
successful and effective asset recovery as a strategic implement a new suite of tools to effectively
www.fatf-gafi.org/en/topics/asset-recovery.html

freeze, seize, and confiscate criminal property, both The FATF is working closely with INTERPOL, the
domestically and through international cooperation. Egmont Group and the CARIN/ARIN Networks to
Ultimately, it is up to each country to implement improve the way countries share information in
these requirements in their national framework. connection with asset recovery.
More importantly, they need to make that mindset
shift to “follow-the money” and take the profit out
of crime.
We can only derive high

benefit from enhanced
or new asset recovery
legislation and measures
if the right structures
and systems are put in
place that will facilitate
its effective use. This
includes the need to have
timely access to funds
flow information and the
ability to rapidly exchange
information across borders.
T. Raja Kumar
FATF President, LDF Forum, Rome
FATF-Interpol Roundtable Engagement
(FIRE)
In September 2022, the FATF and focused on the strategic and operational
INTERPOL launched a joint initiative, changes that are necessary at both
FIRE, to deprive criminals of their dirty national and international level.
money. This is the first time that the FATF Participants agreed on the importance
has combined forces with INTERPOL in of a strong legal framework to effectively
a major global initiative, bringing policy pursue asset recovery and the need for
and operational expertise together to faster and more efficient international
create a formidable front to take the cooperation. The discussions also
profit out of crime. The common goal affirmed the need for strengthened
is to cripple organized crime syndicates, FATF’s Standards to provide countries
better protect society and contribute with better tools to act effectively
to sustainable economic growth. The at every stage of the asset recovery
FIRE initiative mobilises a community of process. Participants at the event also
global experts and policymakers, as well agreed that it was urgent to promote
as law enforcement agencies, financial national policies and actions that
intelligence units, asset recovery offices, prioritise asset recovery and increase
prosecutors, international organisations information sharing between public
and private sector industry leaders, and authorities and with the private sector.
marks a turning point in global efforts to Better understanding of the evolving
recover illicit assets. financial crime landscape is crucial,
especially in relation to cyber-enabled
At the first FIRE event hosted in financial crimes which are borderless.
Singapore, which brought together The second FIRE event was held in Lyon
over 150 high-level experts, discussions in September 2023.
Participants at the joint FATF-INTERPOL Roundtable Event on Asset Recovery, in Singapore, September 2022

Learning and development forum on
asset targeting and recovery
Hosted by Guardia di Finanza in Italy, the as policy makers from around the globe
inaugural Learning and Development participated in the event.
Forum provided a valuable opportunity The FATF will continue its work on
for experts from across the FATF’s identifying solutions to strengthen global
Global Network to build connections asset recovery, including though FIRE
with foreign counterparts and learn 2 in September 2023 and by finalising
specifically about asset recovery amendments to its Standards that will
experiences in other countries. They provide countries with much stronger
discussed examples of successful tools to trace and recover proceeds of
practices and channels for stronger and crime.
faster international cooperation. Over
300 judicial, law enforcement, FIU, tax
and other operational experts, as well
The magnitude of illicit

profits, and the velocity at
which billions are moving
across borders, is deeply
worrying. Organized crime
groups are undermining
global financial systems
and inflicting huge losses
on businesses and
individuals alike. We must
do more to deliver the
significant operational
impact that is needed
today.
Jürgen Stock
INTERPOL Secretary General
FIRE, Singapore, September 2022
Identifying
risks, trends
and methods
Understanding how criminals launder proceeds of crime or how they

raise, use or move funds in support of terrorism or proliferation is crucial
to detect, disrupt and prevent these financial crimes. As countries
implement anti-money laundering and counter terrorist and proliferation
financing measures, criminals must find new ways to raise and move
assets to avoid detection by authorities.
FATF’s research ensures that the FATF Standards continue to provide

robust tools to mitigate new and evolving risks. It will also help countries
better understand the risks they face so that they will be better able to
implement effective measures that mitigate them.
www.fatf-gafi.org/en/topics/methods-and-trends.html

3
typologies reports
6
ongoing projects
Providing updated analysis Including joint work with
of the methods that Interpol, Egmont and the
criminals and terrorist use OECD.
to raise, use and move
assets.
During 2022-2023, the FATF completed research in a number of key areas. FATF complements its published research
with targeted webinars.
These webinars, which bring together a diverse panel of experts on the topic, provide a unique opportunity for in
depth discussion from different perspectives. The webinars broadcast live and available as on-demand videos, aim
so strengthen understanding on important, from money laundering or terrorist financing methods and trends to
FATF Standards or guidance.
www.youtube.com/TheFATF

Ransomware
The global scale of ransomware attacks laundering. Criminals primarily use
and ransomware payments has grown virtual assets, such as crypto currencies,
significantly in recent years, a fourfold capitalizing on easy access to virtual
increase in 2020 and 2021 compared to asset service providers worldwide. The
2019, according to estimates. research highlights concern regarding
jurisdictions lacking robust anti-money
Such attacks target victims ranging from laundering and counter-terrorism
individuals to government agencies financing controls.
to businesses and key facilities and
infrastructure operators around the The report Disrupting the financial flows
world. Ransomware attacks have a far- from ransomware presents concrete
reaching and sometimes devastating actions that countries can take to more
impact, not only for individuals but effectively disrupt money laundering
also for government agencies and associated with ransomware.
business operations, disrupting essential
infrastructure and vital services. The FATF also finalised a list of risk
indicators for banks or other financial
Under the Singapore Presidency, institutions and VASPs that can help
the FATF completed research that public and private sector entities spot
analysed how criminals execute suspicious activities that could identify
ransomware attacks, and the intricate a ransomware victim payment, a
processes involved in making ransomware payment receipt or criminal
payments and conducting money account.
FATF REPORT FATF REPORT
Countering Ransomware Countering Ransomware

Financing Financing
www.fatf-gafi.org
March 2023
www.fatf-gafi.org FATF REPORT
POTENTIAL RISK INDICATORS
March 2023 March 2023
Countering Ransomware
Financing
March 2023
www.fatf-gafi.org
POTENTIAL RISK INDICATORS

March 2023
March 2023

Actions to more effectively disrupt money
laundering associated with ransomware
Implement relevant FATF Standards, including

on VASPs, and enhance detection
– this includes the implementation of FATF Recommendation 15, including the travel rule, the
criminalisation of ransomware as a predicate money laundering offence (Recommendation 3),
enhancing detection by sharing trends, guidance and risk indicators with regulated entities, and
encouraging victim reporting through support, additional resources and safe channels.
Promote financial investigations and asset

recovery efforts
– this includes ensuring the necessary skills and tools are available to quickly collect key information,
trace the nearly instantaneous financial transactions and recover virtual assets before they dissipate.
Adopt a multi-disciplinary approach to tackle

ransomware
– authorities must extend their collaboration beyond their traditional counterparts to include cyber-
security and data protection agencies.
Support partnerships with the private sector

– including with non-traditional partners such as VASPs, which will help create useful platforms for
awareness raising.
Improve international co-operation

- this includes building on and leveraging existing international cooperation mechanisms at bilateral,
regional and multilateral level, and establishing liaison offices and contact points to support rapid
cross-border fund tracing.

Fentanyl and Synthetic Opioids
The synthetic opioid crisis is expanding virtual assets, as well as shell companies
its grip from North America, where the and the services of professional money
non-medical use of fentanyl has led launderers.
to a record number of overdoses and
deaths, to Africa and Asia where opioid- While drug trafficking is a major
related cases are steadily growing. The predicate offence for money laundering
crisis has led to hundreds of thousands in most countries, there appear to be few
of drug overdose deaths and has been investigations and prosecutions of the
fuelled by organised crime groups who laundering of proceeds from synthetic
generate tens of billions of dollars profit opioids trafficking. Many authorities do
annually with the illicit production and not fully understand the global money
trafficking of such synthetic opioids. flows from opioids, or do not know
Unless authorities take the profit out of how to identify potential procurement
this illicit trade, fentanyl and synthetic of chemicals, or laboratory and other
opioids will continue to extend their specialised production equipment.
devastating reach and impact across the FATF’s research aims to raise awareness
globe. about this illicit trade, including the use
of precursor chemicals, and the related
FATF research into the laundering of global financial flows.
proceeds from this trade highlighted
that criminal organisations use a range It also makes recommendations on the
of methods to facilitate laundering of best approaches to detect and disrupt
the huge proceeds of crime, including the criminal networks involved. The
bulk cash smuggling, cash couriers, report also highlights a number of risk
trade-based money laundering and indicators that are relevant to financial
FATF REPORT
Money Laundering
from Fentanyl and
www.fatf-gafi.org Synthetic Opioids
November 2022
November 2022

aspect of synthetic drug trafficking and could criminal groups that bring these opioids
indicate trade-based money laundering, or into our streets and in the hands
use of underground banking and unauthorised of members of our society. Money
money value transfer services. laundering should therefore become a
The devastating impact of the illicit trade central part of the strategy to tackle this
in fentanyl and other synthetic opioids will crime.
continue to grow unless authorities become
more effective in taking the profit out of this
crime by following the money to the organized
Approaches to detect and disrupt the

criminal networks involved in the illicit
production and trafficking of synthetic
opioids
Improve risk understanding
- including on supply chains and the role of the pharmaceutical industry, to develop more robust legal
and regulatory frameworks to combat the trade in illicit opioids.
Drive financial investigations forward

– including through training of prosecutors and relevant authorities to carry out financial
investigations, including in the precursor supply chain; identifying legal and operational obstacles
to the identification, freezing, seizing and confiscating of assets linked to this illicit trade; and strong
compliance policies and procedures.
Improve international co-operation

- expand international cooperation between source, transit and destination countries to identify and
disrupt synthetic opioid supply chains.
Promoting private sector engagement and

public-private partnerships
- Using these partnerships to raise risk awareness of new technologies, including dark web
marketplaces and virtual assets, share red flag information, and help the private sector better identify
and report suspicious activity.

Art and Antiquities
The global art and antiquities market is Terrorist Financing in the Art and
a billion-dollar industry with a history Antiquities Market, which analysed
of privacy and secrecy, where individual typical money laundering methods
objects can attain high prices and in the sector, including by hiding the
where there is frequent use of third- beneficial owners, under or over-pricing
party intermediaries. This has attracted and the use of fake sales or auctions. It
criminals, organized crime groups and looked at how criminals generate funds
terrorists who abuse this market to through art forgery, fraud, theft and
launder the proceeds of crime and fund illegal trafficking. FATF identified the
illicit activities. Terrorists have also been challenges to detect and prevent the
known to sell cultural objects from areas misuse of the art and antiquities market,
where they are active to finance their including challenges to trace the original
operations. of cultural objects and or to identify
and verify customers. FATF’s research
The majority of participants in the art identified risk indicators that will help
and antiquities market are not engaged both public and private sector entities in
in illegal activities. However, there are recognizing suspicious activities within
risks associated with this market and the art and antiquities markets.
many jurisdictions do not have sufficient Some countries have established
awareness and understanding of them. good capabilities and practices, such
As a result, there is a lack of expertise
and resources to conduct investigations,
in particular cross-border investigations.
In February 2023, FATF published
a report on Money Laundering and
FATF REPORT
Money Laundering and

Terrorist Financing in
www.fatf-gafi.org the Art and Antiquities
February 2023
Market
February 2023

as specialized units and access to relevant Commission, Directorate-General for
databases and cooperation with experts Financial Stability, Financial Services and
and archaeologists to help identify, trace, Capital Markets Union (FISMA); Rena
investigate and repatriate cultural objects. But NEVILLE – Director, Corinth Consulting
globally, more needs to be done. FATF’s report, Ltd and Lead AML Consultant, FCS
containing best practices and risk indicators, Compliance Art Division and Dr Donna
aims to help jurisdictions to more effectively YATES - Associate Professor of Criminology
go after the criminals that misuse this sector to and Criminal Law, Maastricht University.
fuel crime and terrorism.
Following the release of this report, FATF

organized a webinar on this topic with
participation by Paul DERGARABEDIAN – Senior
Financial Crimes Specialist, United States
Department of the Treasury; Viktor IVANOV
– Policy Officer, Anti-Money Laundering and
Countering Financing of Terrorism, European
Webinar on Money Laundering and Terrorist Financing

in the Art and Antiquities Market available as on-
demand video on :
over 1400
participants
In the webinar on Money
laundering and Terrorist
Financing in Arts and
Antiquities

Migrant Smuggling
Migrant smuggling is a global issue. webinar on the key findings from the
Every year, millions of migrants seek FATF’s report on this topic. The discussion
to escape regional conflict, political was moderated by Dr Khalid KOSER,
instability, persecution and poverty Founder and Executive Director, Global
in search of a better future. They Community Engagement and Resilience
often risk their lives at the hands of Fund, with participation from Lucia
migrant smugglers who see them as an BIRD RUIZ-BENITEZ DE LUGO - Director
opportunity to make financial gains and of the West Africa Observatory, Global
often have little regard for the migrants’ Initiative against Transnational Crime;
safety. The proceeds generated by Salvador BRISENO - Criminal Intelligence
migrant smuggling are estimated to Officer, Human Trafficking and
exceed USD10 billion per year. In March Smuggling of Migrants Unit, INTERPOL;
2022, the FATF published a report Zana KELAVA- Head of Risk, Investigation
that updated analysis of the money and Analytics, One International Bank
laundering and terrorist financing risks and Melissa SIEGEL - Head of Migration
arising from migrant smuggling that Studies and Head of the Migration and
aims to help countries understand Development Research Section, UNI
and mitigate the risks and disrupt and MERIT & Maastrict University.
recover the proceeds – an important
driver of this crime.
On 13 July 2022, FATF organised a
Webinar on Money laundering and Terrorist Financing Risks

arising from Migrant Smuggling available as on-demand
video on :
www.youtube.com/TheFATF 4.5K views

Of the webinar on Money
laundering and Terrorist
Financing Risks arising
from Migrant Smuggling

Joint Experts’ Meetings
The Joint Experts’ Meeting (JEM) is a unique FATF platform to build on and update
risk understanding, based on the evidence and insights of law enforcement, financial
intelligence, and security agency experts. This year’s joint expert meeting brought
together over 140 participants from across the Global Network.
The April 2023 JEM, the first held in FATF/UNODC workshop

person since the COVID-19 pandemic,
provided an important opportunity hawala and similar service
for experts, including from the private providers
sector and civil society, to exchange
insights on emerging money laundering
On the margins of the JEM, the FATF
and terrorist financing risks and to
and UNODC organized a joint one-day
provide input into FATF’s ongoing work.
workshop on the risks and challenges
During the three-day event, hosted
associated with hawala and similar
in New Delhi by the Indian Ministry
service providers. Authorities discussed
of Finance, Department of Revenue,
measures and ways to increase the
experts discussed FATF’s ongoing work
effectiveness of the Global Network to
on cyber-enabled fraud, the misuse of
address these risks, while recognizing
citizenship and residency investment
the need to safeguard financial inclusion
programmes and terrorist financing
efforts.
through crowdfunding. This valuable
input will be taken into account in the
reports that will be approved by Plenary
in October 2023.
In his opening remarks, FATF President T.

Raja Kumar highlighted the importance
of this forum for experts to share
operational knowledge and experience,
and to steer the FATF on the best course
to deal with new and emerging risks and
threats.
Participants at the Joint Experts’ Meeting listen

to FATF President T. Raja Kumar’s opening
remarks.

Setting the
International
Standards
The FATF Recommendations, or the FATF Standards, requires countries

to put in place a robust toolbox to tackle the illicit financial flows from
crimes such as drug trafficking, tax fraud, corruption and human
trafficking, and disrupt and prevent terrorist financing and the financing of
proliferation of weapons of mass destruction.
Over 200 countries around the world have committed to implement these
global standards in their national frameworks. The FATF continuously
refines and strengthens its Standards in response to evolving threats.
www.fatf-gafi.org/en/topics/fatf-recommendations.html

4
public
2 guidance
papers
1
consultations major update
to the
Standards
The FATF actively engaged with its This year, the FATF Secretariat
stakeholders to raise awareness coordinated, and/or participated in:
about the requirements of the
FATF Recommendations, seek input Î 24 FATF meetings, workshops,
or contribute to collaboration on briefings,
common projects. These engagements
demonstrate the FATF’s leading role in Î 4 events of the FATF’s virtual asset
setting global standards to tackle money contact group,
laundering, terrorist financing and
Î 3 private sector events and
proliferation financing and help clarify
the requirements to relevant audiences.
Î 26 external events
At the same time, these engagements
inform FATF’s ongoing work in refining
and strengthening the Standards. This
year, the FATF Secretariat coordinated
and/or participated in:

Beneficial Ownership
This year, the FATF continued its work to improve beneficial ownership
transparency Standards. The corrupt, sanctions evaders, money launderers
and tax evaders often use anonymous shell companies, trusts or other legal
persons or arrangements to hide their activities or their illegally obtained assets.
FATF’s assessments have shown that most countries have failed to effectively
prevent such abuse of legal persons and arrangements and to ensure that law
enforcement agencies have adequate, accurate and updated information on
their real beneficial owners without impediments.
Recommendation 24 - Legal Persons

Complex corporate structures can The FATF strengthened its Standard on
have legitimate uses, but they can beneficial ownership of legal persons
also be used for illicit purposes. For in March 2022. This year, the FATF
example, corrupt officials may use shell developed guidance to help countries
companies to launder money siphoned and the private sector implement
away from public funds to the detriment the revised requirements of
of public services such as healthcare Recommendation 24 on legal persons.
and education. The lack of beneficial The guidance will help countries identify,
ownership transparency across different design and implement appropriate
jurisdictions makes it difficult for law measures to ensure that beneficial
enforcement to track down the ultimate ownership information is held by a
beneficial owners behind companies public authority or body functioning
suspected of financial crime. as a beneficial ownership registry, or
BENEFICIAL OWNERSHIP
OF LEGAL PERSONS
MARCH 2023

an alternative mechanism that enables experiences, challenges and lessons
efficient access to the information. The learnt in collecting beneficial ownership
guidance will also help countries assess information. The panel also explored the
and mitigate the money laundering role of the private sector in enhancing
and terrorist financing risks associated the accuracy and timeliness of beneficial
with foreign companies to which their ownership information.
countries are exposed.
This guidance was the result of several

Recommendation 25 -
months of intense consultation with Legal Arrangements
external stakeholders and the private
sector, including through a public In February 2023, the FATF agreed on
consultation at the end of 2022. This enhancements to Recommendation
ensures that the guidance is clear 25 on legal arrangements to bring
and addresses the questions that its requirements broadly in line with
stakeholders in the public and private those for Recommendation 24 on legal
sectors may have. persons. These amendments ensure
a balanced and coherent set of FATF
The FATF dove further into this topic Standards on beneficial ownership for
with a webinar which focused on the both legal persons and arrangements.
objectives and rationale behind the In doing so, the FATF sought input from
changes to the FATF Standards, with relevant stakeholders, including through
the participation of Professor Michael a White Paper consultation and a public
Levi, Professor of Criminology, Cardiff consultation on proposed changes.
University; Chiara Bacci, Policy Officer,
European Commission; Isabelle Scherf Following the adoption of the updates
- Global Head of Financial Crime to the Standards, the FATF has started
Compliance, Fidelity International; work on a guidance document to
Emilie Van der Does de Willebois- Global help countries implement the revised
Lead for Financial Market Integrity, requirements of Recommendation 25.
Finance, Competitiveness & Innovation, The FATF expects to complete this work
World Bank and moderated by Tom by February 2024.
Neylan, Head of Risk and Policy Unit, at
the FATF Secretariat.
This panel of experts, who helped

shape FATF’s work on beneficial
ownership, discussed national
Webinar on Beneficial Ownership of Legal

Persons available as on-demand video on :
www.fatf-gafi.org/en/topics/beneficial-ownership.html

Virtual Assets
Four years after the FATF strengthened its Next Steps
Standards to address virtual assets and
virtual asset services providers, global Given the urgent need to close the gaps
implementation of these measures in global regulation, the FATF Plenary
remains relatively poor. In June 2023, in June 2023 agreed on a “Roadmap”
the FATF released its third targeted to accelerate implementation of
update on implementation of FATF Recommendation 15. This roadmap
Recommendation 15 on virtual assets includes measures to support countries,
and virtual asset service providers. including training, outreach, sharing
of relevant laws, risk assessments and
The update shows that jurisdictions guidance. The FATF and its Virtual Assets
continue to struggle with implementing Contact Group (VACG) will continue
the fundamental requirements of this to conduct outreach to and assist low-
Recommendation. Based on 98 FATF capacity jurisdictions to implement
mutual evaluation and follow-up reports, Recommendation 15 and regulate the
75% of jurisdictions are either only virtual assets sector.
partially or not compliant with the FATF’s
requirements. There is also insufficient In the first half of 2024, the FATF will
progress on implementation of the publish a table that shows the steps that
Travel Rule, a key FATF requirement FATF member jurisdictions and other
to guard against the ML/TF/PF risks jurisdictions with materially important
surrounding virtual assets. More than virtual asset activities have taken to
half of the jurisdictions that responded implement Recommendation 15.
to FATF’s 2023 Survey still had not taken
any steps towards implementing the The FATF recognizes that the private
Travel Rule. sector has made some progress to
comply with the requirements of the
This is a serious concern as the risks Standards. It is important to ensure
posed by virtual assets continue to that all players have appropriate risk
increase. The lack of regulation of identification and mitigation measures
virtual assets and virtual asset service in place and that tools to comply with
providers creates significant loopholes the Travel rule are compliant and
for criminals to exploit. For example, interoperable.
FATFs report on disrupting the financial
flows from ransomware highlights that The FATF will continue to work with the
ransom demands are almost exclusively Global Network and private sector to
in virtual assets. monitor the fast-evolving risks in this
sector, share approaches and identify
challenges.
www.fatf-gafi.org/en/topics/virtual-assets.html

Real Estate Sector
Real estate investment opportunities Unit Germany; Nicola Thivessen
can attract criminals who seek to launder - Kinleigh Folkard & Hayward;
illicit profits or who are looking for real Tommas Kaplan - Von Poll; Peter
estate to use as part of their criminal German KC, PhD, moderator,
activities. In some countries, the high President International Centre
demand for real estate has even led to for Criminal Law Reform, Chair
a significant increase in property prices. of the Advisory Committee of
the Vancouver Anti-Corruption
As highlighted in FATF’s mutual Institute (VACI); Susan J. Schneider
evaluations, professionals in the real - US Department of Justice; and
estate sector and their supervisors often Andrew Sander - US Treasury.
do not fully understand how their sector
can be abused for money laundering or This panel of highly experienced
terrorist financing. The FATF therefore public and private sector experts
updated its guidance for a risk-based shared their perspectives on
approach for the real-estate sector tackling money laundering through
to provide real estate professionals real estate transactions. The
with tools and examples to help them discussions highlighted the value
implement the FATF’s requirements. of public-private partnerships, the
supervisory framework, and some
In November 2022, the FATF organized of the common challenges.
a webinar with participation by
Christine Lustig - Financial Intelligence
Webinar on Money Laundering through

the Real Estate Sector available
as on-demand video on :

Unintended Consequences of the
Revision of Recommendation 8 on
Non-Profits
The 2021 FATF stocktake on unintended The incorrect implementation of FATF

consequences of the FATF Standards Recommendation 8 can have a chilling
highlighted that there are still effect on the activities of legitimate NPOs.
significant issues with the risk-based In June 2023, the FATF agreed to release
implementation of Recommendation 8 for public consultation, proposed
on non-profit organisations (NPOs) in amendments to Recommendation 8
the Global Network. and its Interpretive Note, which will
add clarity to the requirements and
NPOs play a vital role in the world, often aim to ensure correct implementation.
providing essential and sometimes
lifesaving services to those in need, but The FATF has also proposed to update its
some of them may be abused for terrorist best practices paper on combating the
financing. FATF Recommendation abuse of NPOs which reflects proposed
8 addresses the abuse of NPOs for changes to Recommendation 8. With
terrorist financing. In 2016, the FATF this work, the FATF aims to protect NPOs
clarified that not all NPOs are vulnerable from abuse for terrorist financing, while
to terrorist financing abuse and called on ensuring that legitimate NPO activities
countries to apply a risk-based approach are not unduly disrupted.
to address the risks, without disrupting
or discouraging legitimate non-profit
activities.
www.fatf-gafi.org/en/topics/financial-inclusion.html

Mutual
Evaluations
All member countries of the Global Network have committed to

implementing the FATF Recommendations. The Mutual Evaluation, a
rigorous peer review, assesses whether countries have implemented the
requirements of the FATF Recommendations and how effectively their
systems are tackling the risks they are exposed to and combating money
laundering and the financing of terrorism and proliferation of weapons of
mass destruction.
www.fatf-gafi.org/en/topics/mutual-evaluations.html

published this year:
89%
4
mutual evaluations
of FATF Membership
has been assessed
6
follow-up reports
During the 2022-2023 Plenary year, the Regional Body, the Asia/Pacific Group
FATF published four mutual evaluation on Money Laundering. Following this
reports: on Germany, Indonesia, The assessment, Indonesia continues its
Netherlands and, jointly with MENAFATF, work to fulfil the FATF’s membership
Qatar. In August 2022, the FATF requirements.
published the mutual evaluation reports
of Germany and The Netherlands, which In June 2023, the FATF discussed and
had been discussed and adopted at the adopted the mutual evaluation report
June 2022 Plenary in Berlin. of Luxembourg which will be published
following a quality and consistency
In February 2023, the FATF discussed review, in line with the FATF Procedures.
and adopted the joint FATF-MENAFATF
mutual evaluation report of Gulf By the end of the 2022-2023 Plenary
Cooperation Council member Qatar. year, the FATF published the mutual
evaluation reports of 33 of its 37 member
The FATF also discussed and adopted the countries; 89% of FATF members have
mutual evaluation report of observer now been evaluated in the current 4th
member Indonesia, in the context of its Round.
request for FATF membership. Indonesia
is already a member of the FATF-Style

Overall, the reports demonstrate that Published mutual
commitment to technical compliance
evaluation reports
with the FATF Standards is high. The
countries evaluated so far rated largely
Anti-money laundering and counter-terrorist financing measures

compliant (LC) or compliant (C) on 77% Anti-money laundering Anti-money laundering
and counter-terrorist
of the Recommendations in their mutual financing measures financing measures

Germany Indonesia
Mutual Evaluation Report
evaluation report. This percentage

Indonesia
Germany
August 2022 April 2023
increases through the follow-up 2023

2022
process, as outlined below. However,

in terms of effectiveness, countries
are only achieving moderate or low

levels of effectiveness in 57% of the
Immediate Outcomes, indicating there Anti-money laundering
financing measures
Anti-money laundering
financing measures
needs to be a greater emphasis on the The Netherlands

Qatar
effective implementation of the FATF

Netherlands
Qatar
The
August 2022 May 2023
Recommendations. 2022 2023
Technical compliance Level of effectiveness

of FATF Members’ AML/CFT regimes* of FATF Members’ AML/CFT regimes*
9%
21% Low
48% 29% Partially 48% 37%
Largely Compliant Compliant Compliant Moderate Substantial
6%
High
2%
Non Compliant
* At the time of their mutual evaluation.

Source: 33 completed mutual evaluation reports for FATF Members in the 4th Round.

Follow-up process
During 2022-2023, the FATF adopted The FATF 4th Round of mutual
and published six technical compliance evaluations is nearing completion. The
re-rating reports in which FATF members assessments of the four remaining
received one or more upgrades for FATF members in this current cycle are
technical compliance with the FATF’s 40 underway, with the last assessment
Recommendations. These jurisdictions expected to be discussed and adopted
(China; Finland; Hong Kong, China; at the October 2024 Plenary.
Japan; Mexico and Norway) significantly
improved on their technical compliance Published follow-up
since their mutual evaluation report as
reflected in detail in the chart below.
reports
Follow-up reports involving technical Anti-money laundering and

counter-terrorist financing Anti-money laundering and
measures counter-terrorist financing
compliance re-rating requests also People’s Republic of

measures
Finland
China
look at whether countries’ measures 3rd Enhanced Follow-up Report &

Technical Compliance Re-Rating
Follow-up Report &
Technical Compliance Re-Rating
meet the requirements of any FATF

Follow-up report
Follow-up report
October 2022
Recommendations that have changed

since their on-site visit. November 2022 November 2021
Both Hong Kong, China and Norway

were assessed for technical compliance Anti-money laundering and
counter-terrorist financing
measures
Anti-money laundering and
counter-terrorist financing
measures
with the requirements on virtual assets Hong Kong, China Japan

Follow-up Report & Follow-up Report &
and virtual asset service providers

Technical Compliance Re-Rating Technical Compliance Re-Rating
Follow-up report
Follow-up report
February 2023 September 2022
(R.15), with both countries receiving a

downgrade to partially compliant and
largely compliant respectively. November 2021 November 2021
Anti-money laundering and Anti-money laundering and

counter-terrorist financing counter-terrorist financing
measures measures
Mexico Norway
Follow-up Report & Follow-up Report &
Technical Compliance Re-Rating Technical Compliance Re-Rating
Follow-up report
Follow-up report
May 2023 February 2023
Technical compliance
after re-rating in follow-up report*
November 2021 November 2021
26%
Compliant
17%
58%
Largely Compliant
51%
Partially Compliant
14%
28%
3%
Non Compliant
3%
Follow-up report Mutual Evaluation
* Source: mutual evaluation reports and follow-up

reports for China; Finland; Hong Kong, China; Japan;
Norway; and Mexico

5th Round of Mutual Evaluations
With the next round of mutual A priority for the FATF during this
evaluations commencing in late 2024, Plenary year had therefore been to
the FATF placed a significant focus on identify the resources necessary to
preparations for the next round. This support the shorter evaluation cycle
includes work to clarify and refine the at the FATF and within the Global
5th Round Methodology for assessments Network, while ensuring consistent
and Procedures for assessments and and high-quality assessments.
follow-up. The Methodology, which was
approved by the FATF in March 2022, but Work will continue in this area during
is not yet in effect, will be the foundation the 2023-2024 Plenary year, alongside
for all assessments conducted in the assessor training activities and outreach
5th round of mutual evaluations. The to the FSRBs to help them prepare for
Procedures, also approved in March the next round of mutual evaluations.
2022, describe the steps for assessment
and follow-up processes.
When the Plenary approved the

Methodology and Procedures for the
5th round of mutual evaluations in
2022, delegates also agreed that the 5th
round should take six years to complete.
When the 4th round is completed at
the end of 2024, it will have taken the
FATF 10 years to assess all its members.
The significantly shorter 5th round
will require an accelerated pace of
assessments, with approximately seven
mutual evaluations adopted each year.
www.fatf-gafi.org/en/publications/Mutualevaluations/5th-Round-Methodology.html

Ratings following the mutual evaluation and
Netherlands
Hong Kong,
follow‑up reports published during 2022-2023
Indonesia
Germany
Norway
Finland
Mexico
Japan
China
Qatar
China
mutual evaluation report follow-up report
(shaded cell) not reassessed during follow-up
High Substantial Moderate Low

Effectiveness
Risk, policy and coordination (IO.1)

International co-operation (IO.2)
Supervision (IO.3)
Preventive measures (IO.4)
Legal persons & arrangements (IO.5)
Financial intelligence (IO.6)
ML investigation & prosecution (IO.7)
Confiscation (IO.8)
TF investigation & prosecution (IO.9)
TF preventive measures & financial sanctions (IO.10)
PF financial sanctions (IO.11)
Compliant Largely compliant Partially compliant Non compliant

Technical Compliance
Assessing risk & applying risk-based approach (R.1)

National cooperation & coordination (R.2)
Money laundering offence (R.3)
Confiscation & provisional measures (R.4)
Terrorist financing offence (R.5)
Targeted financial sanctions - terrorism & TF (R.6)
Targeted financial sanctions - proliferation (R.7)
Non-profit organisations (R.8)
Financial institutions secrecy laws (R.9)
Customer due diligence (R.10)
Record keeping (R.11)
Politically exposed persons (R.12)
Correspondent banking (R.13)
Money or value transfer services (R.14)
New technologies (R.15)
Wire transfers (R.16)
Reliance on third parties (R.17) N/A
Internal controls & foreign branches /subsidiaries (R.18)
Higher risk countries (R.19)
Reporting of suspicious transactions (R.20)
Tipping-of and confidentiality (R.21)
DNFBPs - customer due diligence (R.22)
DNFBPs - other measures (R.23)
Transparency & BO of legal persons (R.24)
Transparency & BO of legal arrangements (R.25)
Regulation & supervision of financial institutions (R.26)
Powers of supervision (R. 27)
Regulation & supervision of DNFBPs (R.28)
Financial intelligence units (R.29)
Responsibilities law enforcement / investigative authorities (R.30)
Powers law enforcement / investigative authorities (R.31)
Cash couriers (R.32)
Statistics (R.33)
Guidance and feedback (R.34)
Sanctions (R.35)
International instruments (R. 36)
Mutual legal assistance (R.37)
Mutual legal assistance: freezing and confiscation (R.38)
Extradition (R.39)
Other forms of international cooperation (R.40)
High risk and
Other Monitored
Jurisdictions
Criminals exploit countries with weak measures to tackle money

laundering and terrorist financing to conduct their illicit financial
transactions. It has a negative impact on safety and security in the
country, increasing crime but also contributes to economic instability and
a loss of trust in government and the rule of law. This is why FATF works
to identify jurisdictions with such strategic deficiencies, also referred
to as the ‘grey list’, and to raise awareness about the specific risks
emanating from each of them. This public identification of the weak links
in the global financial system, will help keep out the illicit financial flows
that enable criminal activity such as drugs and arms trafficking, human
trafficking and terrorist financing.
www.fatf-gafi.org/en/topics/high-risk-and-other-monitored-jurisdictions.html

125
countries and
101
jurisdictions publicy
jurisdictions listed
reviewed
72
as at June 2023
have since made the

necessary reforms
as at June 2023
Though its International Co-operation FATF works closely with each monitored
Review Group (ICRG), the FATF focuses jurisdiction, in particular low-capacity
on the fundamental deficiencies that countries, to support them in developing
put a jurisdiction at risk of having their action plan and to monitor their
its financial system abused for illicit progress in strengthening their measures
finance. A country is not added to to address their particular risks and
the grey list because of one or two context. A new training programme
deficiencies, but because it does not introduced in jANUwill help jurisdictions
have the fundamental measures to crack in the ICRG process better understand
down on money laundering and terrorist what is required from them. This will
financing, which poses a risk to the entire allow them to efficiently work through
global financial system. Illicit finance their action plan and demonstrate the
enables a wide range of criminal activity necessary progress to exit the ICRG
such as drugs and arms trafficking, process. Exiting the ICRG process will
human trafficking and terrorist attacks. restore a jurisdiction’s reputation as a
It also contributes to a high cost of safe place to do business, help attract
living, loss of government resources investment and contribute to inclusive
for essential infrastructure and makes and sustainable growth.
a country less attractive for public and
private investment. Combatting these
illicit financial flows is therefore critical
to sustainable economic and social
development.

New jurisdictions subject to increased
monitoring
In October 2022, the FATF added strengthen their measures and to report
the Democratic Republic of Congo, back to the FATF on the progress it has
Mozambique and Tanzania to its grey made.
list. In February 2023, it added South
Africa and Nigeria, and in June 2023, The FATF and the FATF-Style Regional
Cameroon, Croatia and Vietnam were Bodies will work with these countries
added. Each country under increased as they focus on completing their
monitoring recognised the deficiencies respective action plans within the
and committed to an action plan to agreed timeframe.
Removal from increased monitoring

The public identification by the FATF is a Since July 2022, four countries were
powerful and effective tool to generate able to demonstrate that they had
the necessary political commitment implemented the necessary major
to drive through the required reforms. reforms in line with their respective
These reforms will improve the strength action plans and that there was high-
and transparency of a country’s financial level political commitment to sustain the
system and have a positive impact on a reforms. These countries are no longer
country’s reputation. subject to FATF’s increased monitoring.
Cambodia | In February 2023, the FATF also welcomed Cambodia’s significant progress in improving its
AML/CFT regime. Cambodia has strengthened the effectiveness of its AML/CFT regime to meet the commitments
in its action plan regarding the strategic deficiencies that the FATF identified in February 2019. Cambodia made
improvements in the legal framework for international cooperation and preventive measures and risk-based
supervision of financial institutions and designated non-financial businesses and professions. The country also
improved the quality and quantity of FIU disseminations, it increased and improved investigation and prosecution
of money laundering and asset confiscation. Cambodia also established and implemented a legal framework for
proliferation financing targeted financial sanctions.
Morocco | In February 2023, the FATF welcomed Morocco’s significant progress in improving its AML/CFT
regime. Morocco strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action
plan regarding the strategic deficiencies that the FATF identified in February 2021. In particular, Morocco improved
its international cooperation mechanisms and strengthened AML/CFT supervision. The country strengthened
transparency of legal persons by ensuring timely access to accurate beneficial ownership information. Morocco
strengthened the capacities of its financial intelligence unit, and enhanced capacities to conduct money laundering
investigation and confiscate the proceeds of crime and improving effectiveness of the targeted financial sanctions
regime. Morocco is therefore no longer subject to the FATF’s increased monitoring process.

Nicaragua | In October 2022, the FATF noted Nicaragua’s progress in improving the elements of its AML/
CFT regime covered by its action plan. Nicaragua addressed technical deficiencies to meet the commitments of its
action plan regarding strategic deficiencies that the FATF identified in February 2020. Specifically, Nicaragua updated
its national risk assessment on ML/TF and disseminated the outcomes of its ML/TF risk understanding to competent
authorities and relevant private sector entities. Nicaragua also put in place mechanisms to ensure that beneficial
ownership information of legal persons and arrangements is maintained and obtained in a timely manner. While the
FATF removed Nicaragua from its increased monitoring, the Plenary did express strong concern over the potential
misapplication of the FATF Standards resulting in the suppression of Nicaragua’s non-profit sector. The Plenary urged
Nicaragua to continue to work with GAFILAT, of which it is a member, to further improve its AML/CFT regime,
including by ensuring that its oversight of non-profit organisations is risk-based and in line with the FATF Standards.
Nicaragua is strongly encouraged to continue cooperating with GAFILAT on this issue.
Pakistan | Also in October 2022, the FATF welcomed Pakistan’s significant progress in improving its AML/CFT
regimes. Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to
meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and
June 2021. Pakistan worked through 34 action plan items in total, completing its second action plan in advance of
the deadline. This significant progress was made possible because of Pakistan’s continued political commitment to
combat terrorist financing and money laundering. In particular, the country demonstrated that terrorist financing
investigations and prosecutions target senior leaders and commanders of United Nations’ designated terrorist
groups. Pakistan also demonstrated that there is a positive upwards trend in the number of money laundering
investigations and prosecutions being pursued, in line with the country’s risk profile.
High-Risk Jurisdictions subject to a

call for action
In October 2022, the FATF added Myanmar. When applying enhanced
Myanmar to the list of jurisdictions due diligence measures, countries
subject to a call for action. Myanmar was should ensure that flows of funds for
subject to enhanced monitoring since humanitarian assistance, legitimate
February 2020. The action plan that non-profit activity and remittances are
the country had committed to, expired not disrupted.
in 2021. In June 2022, the FATF strongly
urged Myanmar to swiftly complete Since February 2020, in light of the
its action plan by October 2022 or the COVID-19 pandemic, the FATF has
FATF would call on its members and paused the review process for countries
urge all jurisdictions to apply enhanced in the list of High-Risk Jurisdictions
due diligence to business relations subject to a Call for Action, given that
and transactions with Myanmar. Given they are already subject to the FATF’s
the continued lack of progress and call for countermeasures. The FATF’s call
the majority of its action items still for action on Iran and the Democratic
not addressed after a year beyond the People’s Republic of Korea, adopted in
action plan deadline, the FATF decided February 2020, remains in effect, even
that further action was necessary in line if the statement may not necessarily
with its procedures and FATF calls on reflect the most recent status of these
its members and other jurisdictions to countries’ AML/CFT regimes.
apply enhanced due diligence measures
proportionate to the risk arising from

The Global
Network
The fight against money laundering and the financing of terrorism and
proliferation requires a strong coordinated global response. The work
of the Global Network, which consists of the FATF and nine regional
bodies as Associate Members and observers, is crucial to success. 206
countries and jurisdictions in the Global Network have committed to
implement the FATF Standards.
www.fatf-gafi.org/en/countries/global-network.html

24
draft FSRB mutual
39
draft FSRB follow-up
evaluation reports reports reviewed by
reviewed by FATF FATF Secretariat and
Secretariat and Global Network
Global Network
18
reports published
18
reports with re-ratings
during this Plenary published during this
year Plenary year
Established in different regions around endorsed by FATF Ministers in April 2022,

the world, the FSRBs are instrumental which aims to leverage the expertise
in implementing and enforcing the and work of the Global Network more
international anti-money laundering/ effectively. The first goal of the Strategic
countering the financing of terrorism Vision is to ensure that FSRBs are fully
and proliferation Standards set by prepared and equipped to conduct the
the FATF. They are united by a shared next round of mutual evaluations.
commitment to tackle illicit finance, to
apply a single set of standards and a The FATF continued to work closely
universal system of mutual evaluations. with each of the nine FSRBs, including
Together, the FATF and FSRBs help through their individual tailored
maintain the integrity of the global roadmaps to assist them in completing
financial system, safeguard national and the current round of mutual evaluations
regional security, and uphold the rule of with timely and accurate reports and
law. identify specific areas where support
is needed. During this period, FATF
Under the Singapore Presidency, the members provided 24 assessors and 18
FATF made it a priority to further reviewers for FSRB assessments.
reinforce FATF partnerships with FSRBs
and to achieve the common objectives In preparation for the next round of
of preventing and combating money mutual evaluations and based on
laundering, terrorist financing and the lessons learnt from the current round,
financing of proliferation of weapons the FATF and FSRBs have started working
of mass destruction. This builds on the on updating the Universal Procedures
Strategic vision for the Global Network, which will form the basis for mutual

evaluations and follow-up for the new cooperation and collaboration with a
round in the Global Network. FATF has view to incorporate relevant FSRBs’
also provided guidance to FSRBs to regional perspectives in FATF work; and
plan their new round and identify key facilitate a shared understanding of the
decision points, including specifically on Standards and of the ME process.
resourcing.
Throughout the year, the FATF
To further strengthen the dialogue with Secretariat provided different forms
the FSRBs, the FATF President organised of support to meet the needs of each
a High-Level Meeting with FSRB Chairs FSRB. This included training activities,
and Executive Secretaries of the nine information sharing sessions with FSRB
FSRBs on the margins of the June 2023 Secretariats and participation in FSRB
Plenary. They discussed a range of issues meetings. The FATF Secretariat also
that impact global implementation reviewed each draft mutual evaluation
of the FATF Standards, including the and follow-up report produced by
preparations for the new round of the the FSRB. This review is crucial, as it
mutual evaluations and progress in the ensures the accuracy and consistency
implementation of the Strategic Vision of those assessments and strengthens
for the Global Network. The discussions recommended actions. Ultimately, this
at this annual meeting will enhance will help the assessed country better
inclusiveness and cohesiveness of the understand the specific deficiencies it
Global Network. FATF and FSRBs will also must address, and the steps it must take
continue to work on projects to enhance to accomplish this.
Mutual Evaluation and Follow-up Reports

Each FSRB is responsible for assessing its the Global Network, including FATF and
own members’ actions to tackle ML, TF FSRB Secretariats and observers, to raise
and PF to ensure that they are effective issues of concern before publication
in delivering the expected results and of the report. This review ensures that
meet the technical requirements of the all reports across the Global Network
FATF Recommendations. are of a high quality and are consistent
with the FATF Recommendations and
To ensure a consistent approach, FATF Universal Procedures.
and FSRBs follow strict processes and
procedures that apply to all assessment This year, the FSRBs completed and
in the Global Network. These common published the mutual evaluations of 18
assessment procedures - the Universal of their members, including 2 jointly
Procedures - ensure that every assessed with the FATF. The FSRBs also
assessment is of a high quality and completed 39 follow-up reports to
that the conclusions and ratings are measure the progress their members
consistent across evaluations. had made following the adoption of the
Following the Plenary discussion and mutual evaluations, including 18 reports
approval of each mutual evaluation, which re-rated countries on one or more
the report undergoes a rigorous quality Recommendations.
and consistency review which allows

Mutual Evaluation and Follow-up Reports Published on the FATF Website
(July 2022-June 2023)
Assessing Body Date Assessing Body Date
Mutual Evaluations Follow-up Reports

Angola ESAAMLG Jun 2023 Botswana ESAAMLG Jan 2023
Aruba CFATF Jul 2022 Cambodia APG Aug 2022
Bulgaria MONEYVAL Jul 2022 Colombia GAFILAT Jan 2023
Republic of the Congo GABAC Sep 2022 Costa Rica GAFILAT Jan 2023
Ecuador GAFILAT Jan 2023 Ethiopia ESAAMLG Aug 2022
Estonia MONEYVAL Jan 2023 Ghana GIABA Aug 2022
Eswatini ESAAMLG Aug 2022 Lithuania MONEYVAL Jan 2023
Gambia GIABA Oct 2022 Mauritius ESAAMLG Jan 2023
Grenada CFATF Jul 2022 Mongolia APG Sep 2022
Kenya ESAAMLG Jan 2023 Myanmar APG Aug 2022
Liechtenstein MONEYVAL Jul 2022 Nigeria GIABA Jan 2023
Monaco MONEYVAL Jan 2023 Pakistan APG Aug 2023
Namibia ESAAMLG Jan 2023 Philippines APG Aug 2023
Paraguay GAFILAT Nov 2022 Senegal GIABA Aug 2022
Suriname CFATF Jan 2023 Tanzania ESAAMLG Jan 2023
Togo GIABA Oct 2022 Uganda ESAAMLG Jan 2023
Uzbekistan EAG Aug 2022 Zambia ESAAMLG Aug 2022
Venezuela CFATF Mar 2023 Zimbabwe ESAAMLG Aug 2022
Î Secretariat was involved in 45 events organised by or with FSRBs, including FSRB and working group and
Plenary meetings, training or information sessions.
Î 8 FSRB Plenary, Council or Ministerial meetings were attended by the FATF President, Vice President or
Executive Secretary.
Î During this period FATF members provided 24 assessors and 18 reviewers for FSRB assessments
Î To date, 80% of the mutual evaluations conducted during the current cycle of mutual evaluations have
been FSRB mutual evaluations.

Training
The FATF training activities aim to strengthen countries’ understanding

of the FATF Standards and how they help combat money laundering,
terrorist financing and proliferation financing. FATF also delivers training
to support FATF countries and FATF-style regional bodies (FSRBs)
in the conduct of mutual evaluations. From its e-learning platform to
the FATF Training Institute in Busan, Korea, the FATF offers tailored
solutions through its worldwide training activities, often in partnership
with FATF members, FSRBs and international organisations such as the
International Monetary Fund and the World Bank.
www.fatf-gafi.org/en/pages/fatf-training-and-support-activities.html

316
delegates attended
1847
delegates benefitted
the Standards from e-learning courses
Training Course this this year
year
The training plan is developed in plays an important role in supporting

conjunction with the Global Network and the development, co-ordination and
aims to improve the understanding and completion of training deliverables. This
implementation of the FATF Standards, includes the production of e-learning
and ensure successful implementation of courses and identifying and planning
assessment processes, including mutual for the training needs of the Global
evaluations and FATF’s process for high- Network in preparation for the next
risk and other monitored jurisdictions cycle of mutual evaluations.
(the ICRG process). The FATF Secretariat
FATF’s Training Institute in Busan

The FATFs Training Institute in Busan, regions. 316 delegates from around
Korea is a dedicated training facility for the world, attended this course, held
government officials from around the in English, Russian, French, Spanish and
world. The FATF Training Institute is Arabic, to gain fundamental knowledge
supported by the Government of Korea, about the FATF Standards and their
and the Metropolitan city of Busan. implementation. The STC is designed
During the year, the FATF’s Training for AML/CFT practitioners with prior
Institute organised 8 Standards Training exposure to the FATF Standards and
courses (STCs), targeted at specific is delivered through a combination

xx
FATF President T. Raja Kumar (centre) with Executive Secretary Violaine Clerc (3rd from left) and Head of the Busan
Training Institute Joël Godard (3rd from right) with the staff of the training institute .
of e-learning, presentations, group 2022 which is designed for experienced

discussions and small group activities. AML/CFT experts from around the Global
Since the inaugural STC in April 2021, Network. Since the inaugural STC Train-
the FATF’s Training Institute delivered 22 the-Trainer course in December 2021,
STC to 817 participants. 78 participants have completed the
course and have significantly expanded
The FATF Training Institute also delivered FATF’s training capacity.
the second annual Standards Training
Course - Train the Trainer in November
Joint Assessor Training

The mutual evaluations are crucial in
determining whether countries are
effectively combating money laundering
and terrorist financing, in compliance
with the FATF Recommendations. Each
mutual evaluation relies on qualified,
1320
experienced and trained assessors. This
Plenary year, the FATF organised two
training sessions for future assessors.
The assessor training ensures that each
delegates
assessor has an in-depth understanding
of the FATF Recommendations and have successfully qualitified
knows what to look for during a mutual as assessors since 2013.
evaluation to correctly assess a country
in line with the FATF Methodology.

High-risk and other monitored
jurisdictions (‘ICRG’ process)
In January 2022, the FATF introduced The FATF also launched a training
a new course for countries that have course for reviewers involved in the
entered the FATF’s ICRG process. The ICRG process, a requirement of the FATF
course explains the procedures and Procedures for the 5th Round of mutual
shares best practices so that the country evaluations. The course explains the
is well equipped to efficiently work fundamental steps of the ICRG process
through the process and exit it as soon and the expectations of the reviews that
as possible. During the 2022- 2023 are part of the ICRG Joint Groups.
Plenary year, the FATF delivered training
courses to 5 countries that are under
increased monitoring by the FATF.
@cademy
The FATF extended it e-learning and targeted financial sanctions related
programme with two new courses. These to terrorism and terrorist financing.
courses complement the existing FATF
Introductory e-Learning Course, which Additional courses on financial inclusion
is available in English, French, Spanish, and beneficial ownership are under
and Russian, and e-learning courses on development.
counter proliferation financing, virtual
assets/virtual asset service providers,
New: National money laundering and terrorist

financing risk assessment
This course focuses on how countries should identify, assess and understand their money
laundering/terrorist financing risks and the importance of the implementation of an
effective risk-based approach through national encompassing measures.
New: Risk-based Supervision

This course provides supervisors with a broad understanding and application of an effective
risk-based approach to conduct assessments that properly evaluate the money laundering/
terrorist financing risks and adjust measures to tackle money laundering and terrorism
financing depending on the entities under their supervision.

FATF Secretariat and Financial
Statement
At the close of the first Plenary year under the The FATF Secretariat brings together 27
FATF’s two-year Singapore Presidency, there nationalities and has achieved gender
are 68 staff members at the FATF Secretariat, balance at its management levels with
including secondees from FATF members. an equal number of male and female
During the year, the FATF onboarded 8 new managers.
staff members, while 9 staff members left
the FATF Secretariat. In June 2023, the FATF The FATF Secretariat provides support to
welcomed 5 interns who contributed to FATF’s the FATF delegations and its President,
various workstreams and gained valuable to deliver on the FATF’s mandate,
experience working in a dynamic international including by:
environment.
Î providing support to the FATF to achieve its priorities under the Singapore Presidency
Î co-ordinating mutual evaluation missions and drafting of related assessment reports, including
quality and consistency reviews of 44 mutual evaluations and 28 follow-up reports across the
Global Network
Î coordinating the preparation and production of risk analysis and policy papers to be discussed in
working groups and/or the Plenary.
Î organising 3 Plenaries and 21 working groups meetings, which this year gathered 1972 delegates.
Î providing support to the FATF President to successfully run Plenary meetings and to successfully
engage with key stakeholders as the spokesperson of the FATF.
Î coordinating communication around FATF’s work, including publication of e reports, organisation

of webinars and media engagement
Î providing support to the Global Network, and participation this year in 45 events organised by
68 staff
including 8 seconded or loaned staff
66%
2/3 of FATF staff is female.
27
There is full gender balance at Policy staff
management level with equal 45 staff
nationalities numbers of male and female
managers
or with FSRBS, including 18 FSRB working group and Plenary meetings as well as training or
information sessions.
Î developing outreach and relationships with key partners from international organisations, the
private sector and civil society to advance FATF work
Î providing training to FATF countries and FSRBs.
The FATF Secretariat liaises on an ongoing basis Commission) as well as additional

with the numerous FATF partners, undertakes voluntary contributions provided by
a representational role at professional events some Members for specific projects,
and provides information to the public and which represents 38% of the FATF
the media. budget. The scale used to calculate the
membership fees is based on the OECD’s
The budget of the FATF is funded by annual calculation method, which is a formula
membership fees paid by FATF Members related to the size of the country’s
and the two member organisations (the economy.
Gulf Co-operation Council and the European
FATF Budget 2022-2023

(in EUR)
Budget item FY2022 FY2023
Staff costs (salaries and indemnities) 9 347 045 9 845 075
Travel 1 054 270 1 317 960
Operating costs (including office rental) 960 652 992 641
OECD overhead charges 637 300 979 600
Meeting costs, translation, interpretation 409 836 431 480
IT: investments and maintenance costs 473 689 590 845
Total 12 882 792 14 076 599
www.fatf-gafi.org/en/the-fatf/fatf-secretariat.html

FATF Leadership
The FATF President and Vice President are senior officials appointed by the FATF Plenary from among its members
for a two-year period. The Vice-President assists the President in carrying out his/her responsibilities and stands in
for the President when necessary. The FATF Executive Secretary advises the President and Vice President and leads
the FATF Secretariat in Paris.
T. Raja Kumar Elisa de Anda Violaine Clerc

Madrazo
President Vice President Executive Secretary

FATF Secretariat
T. Raja Kumar of Singapore Elisa de Anda Madrazo of Mexico Violaine Clerc is the FATF
started his two-year term as assumed her role as Vice- Executive Secretary since 1 June
President of the FATF on 1 July President of the FATF on 1 July 2022. She is responsible for
2022. He has rich leadership and 2020. She was re-appointed for a leading a Secretariat that works
operational experience, having second term as Vice-President of to bring together expertise from
held a wide range of senior the FATF, from 1 July 2021 to 30 around the world to fight money
leadership roles in the Ministry of June 2023. She currently serves laundering and the financing of
Home Affairs in Singapore and the as Director General in Mexico’s terrorism and the proliferation of
Singapore Police Force for over Ministry of Finance and Public weapons of mass destruction.
35 years. Credit.
www.fatf-gafi.org/en/the-fatf/fatf-presidency.html

FATF Plenary
The FATF Plenary consists of Member jurisdictions and organisations (see Annex I).
The Plenary is the decision-making body of the FATF. Its decisions are taken by consensus.
Heads of delegation attending the FATF Plenary in Paris, June 2023.
www.fatf-gafi.org/en/the-fatf.html

Annex I Members and Observer
Countries
Members
Argentina Gulf Co-operation Council New Zealand
Australia Hong Kong, China Norway
Austria Iceland Portugal
Belgium India Russian Federation*
Brazil Ireland Saudi Arabia
Canada Israel Singapore
China Italy South Africa
Denmark Japan Spain
European Commission Korea Sweden
Finland Luxembourg Switzerland
France Malaysia Türkiye
Germany Mexico United Kingdom
Greece Netherlands, Kingdom of United States
* membership suspended on 24 February 2023
Observer country
Indonesia
Associate Members (FATF Style

Regional Bodies)
Asia/Pacific Group on Money Laundering (APG)
Caribbean Financial Action Task Force (CFATF)
Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures
and the Financing of Terrorism (MONEYVAL)
Eurasian Group (EAG)
Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)
Financial Action Task Force of Latin America (GAFILAT)
Inter Governmental Action Group against Money Laundering in West Africa (GIABA)
Middle East and North Africa Financial Action Task Force (MENAFATF)
Task Force on Money Laundering in Central Africa (GABAC)
www.fatf-gafi.org/en/countries/fatf.html

Annex II The Global
Network
Country/Jurisdiction FSRB Country/Jurisdiction FSRB
Afghanistan APG Central African Republic GABAC
Albania MONEYVAL Chad GABAC
Algeria MENAFATF Chile GAFILAT
Andorra MONEYVAL China, People's Republic FATF-APG-EAG
Angola ESAAMLG of
Chinese Taipei APG
Anguilla CFATF
Colombia GAFILAT
Antigua and Barbuda CFATF
Comoros GIABA
Argentina FATF/GAFILAT
Cook Islands APG
Armenia MONEYVAL
Costa Rica GAFILAT
Aruba CFATF
Côte d'Ivoire GIABA
Australia FATF-APG
Croatia MONEYVAL
Austria FATF
Cuba GAFILAT
Azerbaijan MONEYVAL
Curacao CFATF
Bahrain MENAFATF
Cyprus MONEYVAL
Bangladesh APG
Czech Republic MONEYVAL
Barbados CFATF
Democratic Republic of GABAC
Belarus EAG Congo
Belgium FATF Denmark FATF
Belize CFATF Djibouti MENAFATF
Benin GIABA Dominica CFATF
Bermuda CFATF Dominican Republic GAFILAT
Bhutan, Kingdom of APG Ecuador GAFILAT
Bolivia GAFILAT Egypt MENAFATF
Bosnia and Herzegovina MONEYVAL El Salvador CFATF
Botswana ESAAMLG Equatorial Guinea GABAC
Brazil FATF/GAFILAT Estonia MONEYVAL
Brunei Darussalam APG Ethiopia ESAAMLG
Bulgaria MONEYVAL Fiji APG
Burkina Faso GIABA Finland FATF
Cambodia APG France FATF-MONEYVAL
Cameroon GABAC Gabon GABAC
Canada FATF-APG Gambia GIABA
Cape Verde GIABA Georgia MONEYVAL
Cayman Islands CFATF Germany FATF

Ghana GIABA Lithuania MONEYVAL
Gibraltar MONEYVAL Luxembourg FATF
Greece FATF Macao, China APG
Grenada CFATF Madagascar ESAAMLG
Guatemala GAFILAT Malawi ESAAMLG
Guernsey MONEYVAL Malaysia FATF-APG
Guinea GIABA Maldives APG
Guinea-Bissau GIABA Mali GIABA
Guyana CFATF Malta MONEYVAL
Haiti CFATF Marshall Islands, Republic APG
Holy See MONEYVAL of
Mauritania MENAFATF
Honduras GAFILAT
Mauritius ESAAMLG
Hong Kong, China FATF-APG
Mexico FATF-GAFILAT
Hungary MONEYVAL
Moldova MONEYVAL
Iceland FATF
Monaco MONEYVAL
India FATF-APG-EAG
Mongolia APG
Indonesia APG
Montenegro MONEYVAL
Iraq MENAFATF
Montserrat CFATF
Ireland FATF
Morocco MENAFATF
Isle of Man MONEYVAL
Mozambique ESAAMLG
Israel MONEYVAL
Myanmar APG
Italy FATF-MONEYVAL
Namibia ESAAMLG
Jamaica CFATF
Nauru APG
Japan FATF-APG
Nepal APG
Jersey MONEYVAL
Netherlands Kingdom of FATF
Jordan MENAFATF
New Zealand FATF-APG
Kazakhstan EAG
Nicaragua GAFILAT
Kenya ESAAMLG-
Niger GIABA
Kingdom of Saudi Arabia MENAFATF
Nigeria GIABA
Korea, Republic of Korea FATF-APG
(South Korea) Niue APG
Kuwait MENAFATF Norway FATF
Kyrgyzstan EAG Oman MENAFATF
Lao People's Democratic APG Pakistan APG
Republic Palau APG
Latvia MONEYVAL Palestine MENAFATF
Lebanon MENAFATF Panama GAFILAT
Lesotho ESAAMLG Papua New Guinea APG
Liberia GIABA Paraguay GAFILAT
Libya MENAFATF Peru GAFILAT
Liechtenstein MONEYVAL Philippines APG

Poland MONEYVAL Tonga APG
Portugal FATF Trinidad and Tobago CFATF
Qatar MENAFATF Tunisia MENAFATF
Republic of Congo GABAC Türkiye FATF
Romania MONEYVAL Turkmenistan EAG
Russian Federation FATF-EAG-MONEYVAL Turks and Caicos Islands CFATF
Rwanda ESAAMLG Uganda ESAAMLG
Saint Kitts and Nevis CFATF Ukraine MONEYVAL
Saint Lucia CFATF United Arab Emirates MENAFATF
Saint Vincent and the CFATF United Kingdom FATF
Grenadines United States FATF-APG
Samoa APG Uruguay GAFILAT
San Marino MONEYVAL Uzbekistan EAG
Sao Tome and Principe GIABA Vanuatu APG
Senegal GIABA Venezuela CFATF
Serbia MONEYVAL Vietnam APG
Seychelles ESAAMLG Virgin Islands CFATF
Sierra Leone GIABA Yemen MENAFATF
Singapore CATF-APG Zambia ESAAMLG
Sint Maarten CFATF Zimbabwe ESAAMLG
Slovak Republic MONEYVAL
Slovenia MONEYVAL
Solomon Islands APG
Somalia MENAFATF
South Africa FATF-ESAAMLG
Spain FATF
Sri Lanka APG
Sudan MENAFATF
Suriname CFATF
Swaziland ESAAMLG
Sweden FATF
Switzerland FATF
Syrian Arab Republic MENAFATF
Tajikistan EAG
Tanzania ESAAMLG
Thailand APG
The Bahamas CFATF
The Former Yugoslav MONEYVAL
Republic of Macedonia
Timor-Leste APG
Togo GIABA
www.fatf-gafi.org/en/countries/global-network.html

Annex III Observer organisations
African Development Bank

Anti-Money Laundering Liaison Committee of the Franc Zone (CLAB) [French]
Asian Development Bank
Basel Committee on Banking Supervision (BCBS)
Camden Asset Recovery Inter-agency Network (CARIN)
Council of Europe
Egmont Group of Financial Intelligence Units
European Bank for Reconstruction and Development (EBRD)
European Central Bank (ECB)
Eurojust
Europol
Group of International Finance Centre Supervisors (GIFCS)
Inter-American Development Bank (IDB)
International Association of Insurance Supervisors (IAIS)
International Monetary Fund (IMF)
International Organisation of Securities Commissions (IOSCO)
Interpol
Organization of American States / Inter-American Committee Against Terrorism (OAS/CICTE)
Organization of American States / Inter-American Drug Abuse Control Commission (OAS/CICAD)
Organisation for Economic Co-operation and Development (OECD)
Organization for Security and Co-operation in Europe (OSCE)
United Nations -
United Nations Office on Drugs and Crime (UNODC)
United Nations Counter-Terrorism Committee Executive Directorate (UNCTED)
The Analytical Support and Sanctions Monitoring Team pursuant to resolutions 1526(2004)
and 2253(2015) concerning ISIL (Da’esh), Al-Qaida and the Taliban and associated individuals
and entities
The Expert Group to the Security Council Committee established pursuant to resolution
1540 (2004)
Panel of Experts to the Security Council Committee established pursuant to resolution 1718
(2006)
Security Council Subsidiary Organs Branch
World Bank
World Customs Organization (WCO)

FATF Annual Report
2022-2023
This report summarises the work of the

Financial Action Task Force (FATF)
from 1 July 2022 to 30 June 2023,
under the Presidency of
Mr. T. Raja Kumar of Singapore.
www.fatf-gafi.org

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Annual

ABOUT THE FATF 04 Message from the President

The Financial Action Task Force

2 FATF Annual Report - 2022-2023

AML Anti-money laundering

FATF Annual Report - 2022-2023 3

The current global context is deeply challenging, marked by

This year, the FATF prioritised work to further reinforce partnerships

4 FATF Annual Report - 2022-2023

The FATF’s Global Standards underpin our work, requiring countries

We published updated guidance to help countries implement

FATF Annual Report - 2022-2023 5

and motivator for crimes such as human trafficking, fraud, tax

This year, we also highlighted the urgent need to address the

FATF reports noted the growing misuse of virtual assets by criminals

On global efforts to make financial services faster, cheaper and

6 FATF Annual Report - 2022-2023

The national AML/CFT frameworks of 89% of FATF Members have

The FATF also added two new e-learning courses, on targeted

FATF Annual Report - 2022-2023 7

The FATF also made significant progress in ongoing research,

While financial integrity is essential to encourage investment and

8 FATF Annual Report - 2022-2023

I am pleased to report that under my Presidency, we have initiated

Finally, I wish to thank Elisa de Anda Madrazo, who has worked

FATF Annual Report - 2022-2023 9

10 FATF Annual Report - 2022-2023

We can only derive high

12 FATF Annual Report - 2022-2023

The magnitude of illicit

Understanding how criminals launder proceeds of crime or how they

FATF’s research ensures that the FATF Standards continue to provide

14 FATF Annual Report - 2022-2023

FATF Annual Report - 2022-2023 15

FATF REPORT FATF REPORT

Countering Ransomware Countering Ransomware

POTENTIAL RISK INDICATORS

16 FATF Annual Report - 2022-2023

Implement relevant FATF Standards, including

Promote financial investigations and asset

Adopt a multi-disciplinary approach to tackle

Support partnerships with the private sector

Improve international co-operation

FATF Annual Report - 2022-2023 17

18 FATF Annual Report - 2022-2023

Approaches to detect and disrupt the

Drive financial investigations forward

Improve international co-operation

Promoting private sector engagement and

FATF Annual Report - 2022-2023 19

Money Laundering and

20 FATF Annual Report - 2022-2023

Following the release of this report, FATF

Webinar on Money Laundering and Terrorist Financing

FATF Annual Report - 2022-2023 21

On 13 July 2022, FATF organised a

Webinar on Money laundering and Terrorist Financing Risks

www.youtube.com/TheFATF 4.5K views