FATF adopts the US mutual evaluation and a scam-compound report, Treasury says
Serguey Asael Shinder1 min readThe US Treasury said that senior officials led a US delegation to the Financial Action Task Force plenary in Paris last week, the first under the United Kingdom's presidency, which concluded on 6 November. The global standard setter for anti-money-laundering rules adopted the mutual evaluation reports of the United States and Mexico, according to the Treasury's statement, which presents the US assessment as recognition of the effectiveness of its anti-money-laundering and counter-terrorist-financing system.
The plenary also adopted a report on the financial flows behind scam compounds, which the Treasury calls a basis for a more coordinated response to fraud, and agreed that FATF will use its full range of tools against these networks and hold jurisdictions accountable for failing to address the risks. It agreed to accelerate global implementation of standards for digital assets and to launch a targeted review of certain jurisdictions with longstanding deficiencies in the virtual-asset sector, with decision points for the next plenary on how to ensure accountability.
Iran remains on the FATF blacklist. The plenary reiterated its call on all jurisdictions to apply countermeasures, including restrictions on correspondent banking, digital asset transactions and business relationships with Iran, and to implement the reimposed UN Security Council resolutions on its nuclear programme. The FATF publishes its own outcomes document for the 6 November plenary.
What it means
A mutual evaluation shapes how foreign banks rate the risk of dealing with a country's financial system, which matters for the dollar's role as the settlement currency. The targeted review of virtual-asset jurisdictions is the item with direct consequences: it can lead to greylisting of places where exchanges launder funds.