FATF focus on COVID-19

The COVID-19 pandemic has led to unprecedented global challenges, human suffering, economic disruption and an increase in COVID-19-related crimes.

Since the start of the pandemic, criminals have sought to exploit the crisis to commit scams, fraud and cybercrime. With the assistance of its members and observers, the FATF has acted quickly to address the money laundering threats and vulnerabilities emerging from the crisis.

18 January 2021 - The FATF Executive Secretary gives the MENA Perspective on the Changing Money Laundering and Terrorist Financing Risk Landscape.

23 October 2020 - The FATF President issued a statement emphasizing the importance of allocating sufficient resources to AML/CFT regimes during the COVID-19 pandemic. Read the full statement.

1 April 2020 - The FATF President issued a statement emphasizing the need for collaboration between governments and financial institutions, and called upon them to use the flexibility built into the FATF's risk-based approach. Read the full statement.

" Ensuring citizens remain safe from harm caused by criminal activity including money laundering and terrorist financing should remain a priority for all governments around the world. Competent authorities must continue to be provided with the appropriate resource to enable them to function effectively, in light of the evolving threats posed by criminals, and the constraints on resource faced as a result of the effects of the pandemic."

Statement by the FATF President, 23 October 2020

The FATF issued a paper on COVID-19 related Money Laundering and Terrorist Financing Risks and Policy Responses. This paper identifies challenges and new money laundering and terrorist financing threats and vulnerabilities arising from the COVID-19 crisis. The FATF updated this paper in December 2020.

The papers highlight policy responses that can help support the swift and effective implementation of measures to respond to threats and vulnerabilities emerging during the COVID-19 pandemic.

These measures include domestic coordination to assess the impact of COVID-19 on anti-money laundering (AML) countering the financing of terrorirsm (CFT) risks and systems, strengthened communication with the private sector and supporting electronic and digital payment options.

Covid-19 Related Money Laundering and Terrorist Financing Risks - May 2020

Update-COVID-19-Related Money Laundering and Terrorist Financing Risks

Following the publication of the paper on COVID-19 related Money Laundering and Terrorist Financing Risks and Policy Responses, the FATF organised webinars on this topic, to raise awareness, discuss emerging risks.

Click on the links below for more information, and to watch the recording of these webinars.

7 May - COVID-19-related Money Laundering and Terrorist Financing - this webinar aimed to summarise and higlight the findings and respond to questions from participants.
30 July 2020 - COVID-19 and the Changing Money Laundering and Terrorist Financing Risk Landscape - After a brief update on risks reported by FATF and FSRB members and observers, representatives from Australia, Mexico, Interpol and Europol provided updates and different perspectives on the key money laundering and terrorist financing risks to be aware of.
31 July 2020 - The Impact of COVID-19 on the Detection of Money Laundering and Terrorist Financing - experts representing national financial intelligence units, regulators and the private sector shared their views on this topic.

The COVID-19 pandemic has significantly impacted countries’ ability to actively participate in mutual evaluation and related follow-up processes. In April, the FATF Plenary therefore agreed to temporarily postpone all remaining FATF mutual evaluations and follow-up deadlines. Likewise, the FATF decided on a general pause in the review process for the list of high-risk jurisdictions subject to a call for action and jurisdictions subject to increased monitoring, by granting jurisdictions an additional four months for deadlines.

Read the full statement.