G20 supports the FATF’s work to address money laundering and terrorist financing risks arising from the COVID-19 pandemic and so-called stablecoins

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FATF General

FATF Recommendations

14 October 2020 - G20 Finance Ministers and Central Bank Governors today welcomed the efforts of the FATF to identify the money laundering and terrorist financing risks that have arisen during the COVID-19 pandemic. The global pandemic continues to have a devastating impact on communities and economies around the world, while criminals are exploiting the crisis to siphon off crucial financial aid destined to those in need. As the world faces a long road to economic recovery, it has never been more important for countries to fully implement the FATF Standards and establish sound and effective measures to protect their economy.

In his remarks to G20 Finance Ministers and Central Bank Governors, FATF President Marcus Pleyer emphasised in particular the importance of the risk-based approach, to ensure funds rapidly reach the victims of this crisis, rather than fall into the hands of criminals. The FATF is exploring opportunities offered by new technologies to make anti-money laundering and counter-terrorist financing systems more efficient and effective, particularly vital at this time. This includes work that supports the G20’s ongoing efforts on digital transformation.

The FATF President also highlighted the recent FATF Report to G20 on So-called Stablecoins on the money laundering and terrorist financing risks of so-called stablecoins. The report concluded that the FATF Standards on virtual assets and virtual asset service providers clearly apply in the context of so-called stablecoins. It is crucial for all jurisdictions to fully and effectively implement the FATF standards relating to virtual assets, but the FATF President noted in his remarks that to date only 25 of the 39 FATF members had advised they had implemented the revised FATF Standards. He called on the G20 to lead by example in the implementation of these measures.

G20 members welcomed the FATF’s report and supported the FATF’s ongoing work to address money laundering, terrorist financing and proliferation financing risks relating to virtual assets and so-called ‘stablecoins’. In their communique, they called for the full, effective and swift implementation of the FATF standards worldwide.