Financial Crimes FATF Agency Rule-Making & Guidance Combating the Financing of Terrorism Of Interest to Non-US Persons Anti-Money Laundering Virtual Currency

On February 25, the U.S. Treasury Department announced that the Financial Action Task Force (FATF) concluded another plenary meeting, in which it “advanced its work on several important issues, including finalizing a non-public report on terrorist financing and agreeing to seek public comment on updated guidance documents on virtual assets and proliferation finance.” Among other things, FAFT finalized three non-public reports outlining best practices for investigating and prosecuting terrorist financing for FATF member states, as well as an internal ISIS/Al Qaeda financing update and internal guidance designed “to assist investigative authorities trace financial flows between illicit arms traffickers and terrorists.” FATF also approved new guidance (to be published early March) intended to clarify and improve the adoption of risk-based supervision, which outlines ways supervisors should apply risk-based approaches to their activities, highlights common implementation challenges to risk-based supervision, and provides examples of effective strategies. Additionally, FAFT noted it has agreed to seek public consultation on amendments to its 2019 guidance concerning anti-money laundering/countering the financing of terrorism obligations concerning virtual assets and virtual asset service providers, and expects to release final updated guidance this summer. FATF also stated it intends to issue new guidance this summer on ways countries and the private sector can understand and mitigate proliferation financing threats, vulnerabilities, and risks.