The FATF February 2025 Plenary was the second under Mexico’s Presidency took place on 19–21 February 2025, concluding FATF Week. Delegates from over 200 jurisdictions and global organizations engaged in three days of in-depth discussions addressing key developments, including efforts to combat online child exploitation, enhance financial inclusion through risk-based FATF Standards, and assess progress in high-risk jurisdictions.
FATF February 2025 Plenary Updates on High-Risk and Monitored Jurisdictions (Black list and Grey list).
The FATF February 2025 plenary meeting made adjustments to its grey and black lists by adding and removing some countries from its Grey list, while the FATF black list remains unchanged. The countries involved are: Lao People’s Democratic Republic, Nepal and Philippines.
- Addition to the Grey List: The FATF February 2025 Plenary added Lao People’s Democratic Republic and Nepal under increased monitoring, requiring them to address strategic AML/CFT deficiencies.
- Removal from the Grey List: The Philippines successfully completed its Action Plan, demonstrating significant improvements in its AML/CFT/CPF regime, and is no longer under increased monitoring. The country will continue working with the Asia/Pacific Group on Money Laundering to sustain its progress.
Jurisdictions Under Call for Action (Black List): The FATF repeated the need for vigilance against jurisdictions with serious deficiencies in combating financial crimes, emphasizing measures to protect the international financial system.
Meanwhile, Nigeria is getting close to exiting the grey list after the FATF February 2025 plenary approved its Fifth AML/CFT Progress Report.
Strengthening the FATF Standards for a Risk-Based Approach and Financial Inclusion
Following extensive public consultation, the FATF February 2025 Plenary endorsed revisions to its Standards, reinforcing a risk-based approach while advancing financial inclusion, one of the key priorities under the Mexican Presidency. To facilitate the effective implementation of these changes, a further public consultation will be launched.
Combating Online Child Sexual Exploitation
The FATF February 2025 Plenary approved a crucial report on financial flows linked to online child sexual exploitation. This report, set for publication at an event in London on 13 March 2025, aims to enhance protection measures and strengthen financial intelligence in disrupting these illicit activities.
Strategic Initiatives and Public Consultations
- Financial Inclusion and Risk-Based Approach: The FATF February 2025 Plenary is revising Recommendation 1 to promote a risk-based AML/CFT approach, ensuring financial institutions apply simplified measures where risks are lower. This follows findings from a 2021 stocktake on de-risking and financial exclusion.
- Payment Transparency: A consultation will be launched on potential revisions to Recommendation 16, aiming to improve transparency and standardization of originator and beneficiary information in payment messages.
- Proliferation Financing & Sanctions Evasion: The FATF February 2025 Plenary seeks input on best practices and challenges in detecting and mitigating complex proliferation financing risks.
Enhancing Global Collaboration and Inclusion
- Guest Initiative Expansion: Kenya has joined the Cayman Islands and Senegal as part of the FATF’s guest initiative, fostering inclusivity and regional representation in decision-making.
- Women in FATF & Global Network: The FATF February 2025 Plenary endorsed further measures to support women’s careers within the FATF, with the second edition of the FATF Mentoring Programme set to launch in March 2025.
- Private Sector Engagement: The Private Sector Collaborative Forum is scheduled to take place in Mumbai from 25–27 March 2025, bringing together financial sector representatives, non-financial businesses, civil society, and other stakeholders.
FATF Vice-Presidency (2025-2027)
The FATF February 2025 Plenary selected Mr. Giles Thomson (UK) as the next FATF Vice-President, succeeding Mr. Jeremy Weil (Canada) on 1 July 2025. Mr. Thomson currently serves as Director of the Office for Financial Sanctions Implementation and Economic Crime at HM Treasury and Head of the UK delegation to the FATF.
Horizontal Review on DNFBPs & Corruption Mitigation
The FATF February 2025 Plenary reaffirmed the importance of applying FATF Recommendations to Designated Non-Financial Businesses and Professions (DNFBPs), including lawyers, accountants, trust service providers, and real estate agents, urging continued efforts to address compliance deficiencies.
Continued Suspension of Russia:
The FATF February 2025 Plenary reaffirmed the continued suspension of the Russian Federation, urging all jurisdictions to remain vigilant against circumvention tactics undermining financial sanctions.
As the FATF continues its mission, these developments reinforce global financial integrity, ensuring jurisdictions remain proactive in combating emerging threats and enhancing transparency within the financial system.
What steps should compliance officers take?
Compliance officers should stay informed about the outcome of the FAFT February 2025 Plenary meeting, especially with Nigeria’s nearing exit from the FATF grey list requires compliance officers to strengthen AML/CFT controls, enhance due diligence, monitor high-risk areas, engage with regulators, and stay updated on FATF requirements.
The next FATF plenary is scheduled for June 2025.
You can find the previous plenary coverage from A&D Forensics here:
Contributor: Ibrahim Anuoluwapo Azeez
