FATF 2016 June Plenary Review – In Summary

Author: InnoXcell

June-30 2016

Late last month, the FATF Plenary Review was held in Busan, South Korea. High on the agenda were discussions of terrorist financing; namely – the protection of not-for-profit organisations, solidifying the global response and discussions of transparency and beneficial ownership.

Some of the key findings include:

  • Updates to the 2015 report on the financing of ISIL – including a reflection of the greater understanding of spending and income of ISIL and knowledge of its affiliated organizations
  • A report to the G20 on FATF programs and initiatives which aim to improve global attempts to combat and challenge terrorist financing
  • Revisions made to Recommendation 8 – after two public consultations and a dialogue meeting, revisions reflect the changing climate in which not-for-profit organizations engage in, so as to safeguard them from the unwitting processing of terrorist financing through their networks
  • The production of two new documents on jurisdictions which pose a risk to the international financial system, titled:
    • Jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies for which a call for action applies
    • Jurisdictions with strategic AML/CFT deficiencies for which they have developed an action plan with the FATF
  • The consolidation of information sharing practices between FATF members
  • A discussion of the mutual evaluation reports produced by Austria, Canada and Singapore
    • This included an analysis of each member country’s compliance with FATF recommendations, and the effectiveness of their AML/CFT implementations
  • Update announcement on the AML and CFT improvements in Myanmar and Papua New Guinea – after responding to several insufficiencies acknowledged in previous Plenary meetings, both countries have now been removed from monitoring lists, though they both continue to work with the Asia Pacific Group on Money Laundering to further progress in the region.
  • Recognition of progress made by Brazil – the South American nation has been lauded for advancements made in freezing known terrorist assets following a statement of concern issued by the FATF in February of this year. However, further steps to progress to their CFT must still be taken, it was noted.
  • The FATF Training & Research Institute (TREIN) has been established following a preliminary suggestion by the Korean government. TREIN aims to provide training to prevent systemic corruption and abuse. The institute will be located in Busan, and is expected to open within the next few months.

For a full breakdown of the Plenary meeting, visit the FATF website

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