Global AML Fight Strengthened by FATF MONEYVAL Joint Decisions

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Global standards for anti-money laundering (AML), countering the financing of terrorism (CFT), and countering proliferation financing (CPF) evolved further as the Financial Action Task Force (FATF) and MONEYVAL concluded a landmark joint plenary in Strasbourg in June 2025. The meeting delivered transformative steps for the global AML community, ushering in new compliance measures, revised FATF Standards, and innovative approaches to address threats in the rapidly changing financial crime landscape.

FATF MONEYVAL Plenary Sets New Benchmarks for AML Compliance

The FATF MONEYVAL Plenary, held at the Council of Europe, drew over 200 jurisdictions and a host of observers. This gathering brought together senior policy makers, financial regulators, law enforcement, and civil society. High on the agenda was the adoption of significant reforms to the global AML framework and the evaluation of countries’ progress against updated FATF Recommendations.

One of the most impactful outcomes was the approval of new compliance measures tied to cross-border payments. Building on the G20 initiative to improve payment systems, the plenary agreed to enhance both the transparency and efficiency of international payments by tightening rules on the collection and transmission of originator and beneficiary data. The revised standards are meant to make payments faster, more accessible, and more secure, all while mitigating financial crime risk.

This plenary also approved the first MONEYVAL mutual evaluation report of Latvia under the new cycle of evaluations, which now focus on how countries implement measures to combat money laundering, terrorism financing, and proliferation financing according to the actual risks they face. This marks a significant evolution from previous technical checklists, placing greater emphasis on effectiveness and outcomes.

Additionally, three MONEYVAL member countries—Czechia, Georgia, and Slovakia—were reviewed under the Compliance Enhancing Procedures framework. This process addresses moderate or major technical shortcomings, with follow-up expected at the December 2025 plenary.

The FATF and MONEYVAL also greenlit the publication of new reports and resources in the coming months, including updated guidance on financial inclusion, counter-proliferation financing, and the risk-based approach.

Recommendation 16 Revisions Target Payment Transparency

One of the headline developments at the plenary was the agreement to revise Recommendation 16 of the FATF Standards, a measure critical to the integrity of cross-border financial flows. The new requirements, which will be formalized on 18 June 2025 and implemented by 2030, focus on ensuring that every cross-border transaction over USD 1,000/EUR 1,000 is accompanied by full and accurate originator and beneficiary information.

The revised standard aims to close gaps in payment transparency by mandating stricter information-sharing protocols across all payment service providers, banks, and virtual asset service providers (VASPs). The changes are technology-neutral, meaning they apply equally to traditional SWIFT-based payments and new digital payment infrastructures.

The update is aligned with the G20’s vision for faster and cheaper payments, but it balances speed and access with the need for robust AML safeguards. Financial institutions must collect and transmit the required data, verify its accuracy, and put in place systems that can flag discrepancies and suspicious activity.

The consultation process leading up to the adoption of these changes involved a diverse range of stakeholders, including global banks, fintechs, payment companies, civil society, and international organizations. This collaborative approach ensures that the revised standards are practical, proportionate, and sensitive to privacy and data protection rules.

Financial Inclusion and the Risk-Based Approach

Financial inclusion remained a core focus of the FATF MONEYVAL Plenary. New guidance, set for publication by the end of June 2025, will clarify how countries and financial institutions can apply simplified AML/CFT measures where risks are demonstrably lower. The aim is to bring more unbanked people into the formal financial system without compromising security or compliance standards.

A major risk identified in recent years is de-risking—the practice of financial institutions terminating relationships with clients or regions perceived as too risky. Rather than simply exiting these relationships, FATF now encourages a risk-based approach that evaluates individual client risk and applies appropriate safeguards, ensuring legitimate customers are not excluded from essential services.

A new national risk assessment toolkit was approved at the plenary, giving countries practical tools to identify and manage their AML/CFT/CPF risks. This will help both developed and developing economies strengthen their defenses while supporting inclusive economic growth.

These moves reflect recent updates to Recommendation 1, which now require countries and financial institutions to prove that their controls are effective, proportionate, and tailored to real-world risks. The risk-based approach, now enshrined in assessment methodology, signals a shift from a tick-box compliance culture to one that emphasizes practical results and measurable risk reduction.

Evaluations, Monitoring, and Jurisdiction Updates

The June 2025 plenary produced several significant outcomes in the monitoring and evaluation of jurisdictions’ AML/CFT/CPF frameworks.

Latvia’s mutual evaluation under the new cycle will be published later in 2025, after a quality and consistency review. This evaluation focuses on the effectiveness of Latvia’s measures to prevent money laundering and terrorist financing in light of its unique risk profile.

Croatia, Mali, and the United Republic of Tanzania achieved removal from the FATF list of jurisdictions under increased monitoring—often referred to as the “grey list”—following successful completion of their Action Plans and on-site visits by FATF assessors. Their removal is not the end of oversight; they will continue working with regional bodies to sustain progress.

At the same time, Bolivia and the UK Virgin Islands were added to the list of jurisdictions under increased monitoring, reflecting newly identified strategic deficiencies in their AML/CFT/CPF regimes. Countries on this list work with the FATF and regional bodies to implement Action Plans that address these deficiencies within set timeframes.

Some jurisdictions remain under a “call for action,” meaning they have severe strategic deficiencies and are subject to enhanced counter-measures by the global financial system. High-risk jurisdictions such as the Democratic People’s Republic of Korea, Iran, and Myanmar require financial institutions worldwide to apply enhanced due diligence, increased transaction monitoring, and, in some cases, countermeasures such as limited correspondent banking.

The suspension of the Russian Federation’s FATF membership continues in force, following the February 2024 and subsequent statements. The plenary reaffirmed the importance of vigilance against evolving risks associated with the circumvention of sanctions and international financial restrictions.

Safeguarding Civil Society and NPOs

A persistent concern in the global AML community has been the unintended impact of standards on non-profit organizations (NPOs) and civil society. The plenary approved new procedures to ensure that measures aimed at protecting NPOs from abuse do not inadvertently stifle legitimate activity. Assessment and follow-up processes will now better account for the crucial work done by civil society while targeting only those activities at genuine risk of abuse.

This is particularly relevant for humanitarian organizations, charities, and advocacy groups, which have sometimes faced challenges in accessing financial services or have been subject to overly broad controls. The FATF’s goal is to find the right balance: stopping the abuse of NPOs for illicit finance, while safeguarding their positive social contributions.

Responding to Proliferation Financing and Terrorist Threats

Emerging risks were a significant focus at the plenary, especially the increasing complexity of proliferation financing and terrorist financing schemes. The plenary approved upcoming reports on proliferation financing, which will update previous guidance and provide new information to help both public and private sector actors recognize and respond to sophisticated evasion techniques.

The plenary also approved the most comprehensive global assessment of terrorist financing risks to date, with contributions from over 80 jurisdictions. This report will examine the evolving techniques that terrorist organizations use to raise, move, store, and spend funds. Understanding these trends is vital for financial institutions and authorities as they design new detection and disruption strategies.

Digital finance continues to reshape the financial crime landscape. The FATF’s sixth targeted update on virtual assets and VASPs, also set for release later this month, will assess how jurisdictions are implementing FATF’s standards for cryptocurrencies and related services, as well as the effectiveness of these measures in preventing abuse.

International Cooperation and Support for the Global Network

International cooperation remains at the core of FATF and MONEYVAL’s mission. During the plenary, the FATF Secretariat convened donors and technical assistance providers to discuss how best to support jurisdictions with capacity-building and implementation challenges. This included a side event dedicated to technical assistance for the Global Network, ensuring that countries of all sizes have the tools and resources needed to tackle financial crime.

The plenary also featured a high-level annual meeting with chairs of FATF-Style Regional Bodies, aimed at fostering cohesion and knowledge-sharing. Continued engagement with observer jurisdictions, including Kenya, the Cayman Islands, and Senegal, illustrates the FATF’s efforts to expand inclusivity and account for regional specificities.

Conclusion

The June 2025 FATF MONEYVAL Plenary represents a defining moment for global AML, CFT, and CPF efforts. By raising the bar on compliance for cross-border payments, updating mutual evaluation methodologies, and advancing financial inclusion, the plenary charts a new course for the international fight against financial crime. Recent changes ensure that standards remain relevant as technologies and threats evolve, while also striving to avoid unintended negative impacts on society.

As countries work to implement these reforms by the 2030 deadline, ongoing evaluation, technical support, and international cooperation will be key. The plenary’s outcomes underline that a united and adaptive global response is necessary for a safer, more inclusive, and more transparent financial system.

Source: FATF

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