FATF Reports Progress in Cooperation Against Money Laundering and Terrorist Financing

Significant Progress in Strengthening Anti-Money Laundering/Combating the Financing of Terrorism Regimes

The Financial Action Task Force (FATF) has reported significant progress in its cooperation with several countries in the fight against money laundering (ML) and terrorist financing (TF). In a recent assessment, FATF noted that Nicaragua, Pakistan, and Panama have made substantial strides in strengthening their Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regimes.

Nicaragua

Since February 2020, Nicaragua has taken steps to improve its AML/CFT regime by:

Requesting assistance from other jurisdictions
Adopting a law establishing a register of beneficial owners

However, FATF urges Nicaragua to finalize the updating of its National Risk Assessment (NRA) and conduct effective risk-based supervision.

Pakistan

Pakistan has made significant progress in implementing its comprehensive CFT action plan since June 2018. Law enforcement agencies have:

Identified and investigated a wide range of TF activity
Enforced against TFS violations
Worked to prevent the raising and moving of funds

However, FATF urges Pakistan to complete its remaining three action items by:

Demonstrating that TF investigations target designated persons or entities
Implementing targeted financial sanctions against all 1267 and 1373 designated terrorists

Panama

Since June 2019, Panama has taken steps to improve its AML/CFT regime by:

Finalizing and publishing sectoral risk assessments
Passing legislation on beneficial ownership

However, FATF urges Panama to strengthen its understanding of ML/TF risks in the corporate sector, take action to identify unlicensed money remitters, and ensure effective sanctions against AML/CFT violations.

Overall Progress

The FATF takes note of the significant progress made by these countries and urges them to complete their full action plans before June 2021. The organization emphasizes the importance of cooperation in the fight against ML/TF and encourages all countries to work together to strengthen their AML/CFT regimes.

FATF has also highlighted the importance of training on sanctions evasion, particularly in relation to terrorist financing (PF). The organization urges countries to:

Demonstrate an increase in the freezing/seizing and confiscation of criminal proceeds, instrumentalities, and property of equivalent value
Ensure effective management of seized assets until confiscation