Halfway through Singapore’s FATF Presidency – Is It Missing from the Grey List?

The FATF has just finished the latest 2023 General Assembly (October 25-27), where no scandal involving Singapore, the FATF chairman, from 2022-24, was not mentioned at all. Considering the goals of the FATF General Assembly, this situation is far acceptable for FATF, a global fraudulent funding organization. From the perspective of independent transparency that aims to solve the huge financial issues in the world, ignoring money laundering scandals of this scale is equivalent to white delegation.

The following is the goal of FATF in 2022-24, a Singapore FATF chairman.

At the General Assembly in June 2022, FATF Chairman T. Raja Kumar announced the goal of the next general meeting (July 2022 to June 2024). In retrospect, considering Singapore's $ 2 billion $ 2 billion scandal, these goals seem to have room for scrutiny.

During the Singapore General Assembly period, FATF plans to prioritize work in the following fields:

• Strengthening asset collection
• Countermurment of cyber crimes for fraudulent funding
• Improvement of global AML measures
• Enhancement of FATF partnership with FSRB

Among Singapore's $ 2 billion scandal in Singapore in 2023, it is hard to say that Singapore has been overwhelming as FATF chairman. The unique "global AML countermeasures" have no effect at all, and after criminal acts witnessed in this scandal, "asset collection" measures have become ful l-fledged. The money laundering scandal has hardly contributed to "strengthening FATF partnership with FSRBS" (FSRBS = regional FATF type partner).

The 6 2-dollar Singapore bank DBS, led by the Pysuschu Gupta, the highest executive officer (CEO), prohibits no n-essential activities including M & Amp; A after repeated serious mistakes in digital banking services. 2. 2 This is a Singapore Central Bank in June 2023, in June 2023, the prevention of money launding and terrorist funding measures related to the current wire card fraud cases for DBS, City Bank, OCBC, and Switzerland. It occurred after a total of $ 2. 83 million (a fine fine in the United States) for violating the requirements. This is the question that the MAS and the Singapore Central Bank impose a fine to major banks and shows the reliability of banning them, but the strictness of the first fine has not given DBS sufficient deterrent. You can also see it.

2. Singapore’s Presidency amid money laundering scandal a major worry – but ignored.

At the recent FATF General Assembly in October, Singapore is involved in a huge scandal of $ 2 billion or more, despite the clearly large problem, but the General Assembly's achievements 3 mentions this matter. No sanctions were imposed on Singapore.

Curiously, the FATF Plenary Assembly on October 25-27 decided to add Bulgaria to the FATF grey list. This is a somewhat controversial decision, given that the new Bulgarian government from May 2023 has shown a much more EU-oriented stance than its pro-Russian predecessor. This includes the adoption of an energy tax and a ban to prevent pro-Russian countries such as Hungary from using Bulgaria's energy pipelines. However, the FATF has a point. Bulgaria, like Romania, is widely known to be one of the most corrupt countries in the EU27. 4

Furthermore, the FATF Plenary Assembly on October 25-27, 2023 decided to admit Indonesia to the FATF. Indonesia (and Malaysia) are one of the many moving parts in Singapore's current $2 billion+ scandal, despite years of corruption and a notorious regime under Suharto. Not to mention the revelations about Malaysia, Singapore and Asian neighbors over the 1MDB scandal. 5

FATF welcomes judicial authorities like Indonesia while putting EU and NATO member Bulgaria on the grey list. This doesn't make much sense. The worry is whether the actions of the FATF General Assembly (25-27 October) that seem to have left Singapore out of money laundering allegations have anything to do with Singapore's 2022-24 FATF presidency.

3. Transparency International has for years cited Singapore as a “Little Or No Enforcement” jurisdiction.

Singapore is listed as a jurisdiction with "little or no enforcement" in the "export of corruption" under the OECD Anti-Bribery Convention. Despite its high ranking in Transparency International's (TI) Corruption Perceptions Index (CPI), Singapore cannot be conclusively described as a "clean" jurisdiction. It should be noted that Transparency International does not include money laundering in its CPI index.

Singapore, Denmark and Sweden tend to rank in the top five in TI's CPI. Unfortunately, this is not reflected in reality, with Denmark, Finland and Singapore coming in at the worst when it comes to "exporting corruption", with Transparency International rating them as having "little or no enforcement".

Danish Dancek Bank was fined $ 2 billion in US money laundering in 2022, which was 200 million Euros from Russian upstream customers via the Baltic Sea and Dancek Bank Estonia. Because the funds dive under the radar. Needless to say, the Swedish bank Swedbank's fines of $ 400 million and the SEB's $ 17 million fines (all according to the United States) are for similar money launding crimes in the Baltic region. The large-scale US fines for the Baltic Sea Money Laundering were predicted as of October 2019 in "Cross Border Sanctions and AML" (Square Glove Publishing, 2019) -Most Scandinavian and Nordic and Scandinavia. Despite the protests of the United States, "no jurisdiction" against Nordic banks.

This was the same after BNP Pariba recorded $ 8. 9 billion US sanctions 6 in 2014. BNP Pariba went to Washington to the United States's sanctions for Sudan, Iran, and Cuban transactions, saying that "it has not violated the EU or French law."

Importantly, at the end of 2018, OCCRP elected Dancek Bank as the 2018 Corrupt Actor of the Year for Baltic Money Laundering Scandal. This is four years ago when Dancek Bank was a huge US fine of $ 2 billion in Baltic Money Launding. Often, OCCRP is very good in predicting future fine and penalties in its foresight surveys. Singapore currently has more than $ 2 billion scandals. Citibank Singapore may be imposed on further penalties from the United States. In 2017, the U S-led FCPA (US Overseas Corrupulation Prevention Act) to Singapore's Keppel was $ 422 million ($ 155 million was paid by Brazil and Singapore) , Singapore has been here before.

According to an OCCRP (report on organizational crime and rot) in August 2022, according to the bank confidential document obtained by OCCRP, the DNB of Norway and the Nordea of ​​Finland merge DNB and Nordea Baltic Branch. After a survey by auditors on the hig h-risk customer of Laminar, which was established, ignored the risk of money laundering and red light for many years, and made billions of funds in suspicious transactions. It was revealed that he had moved to a branch. There is no doubt that DNB and Nordea will be further scrutinized and will eventually be penalized from the United States.

Singapore's current scandal of more than $ 2 billion is another example in which countries and regions, which should be "clean," are struggling with fraudulent overseas outflow. This has been pointed out by Transparency International for several years, but it does not seem to admit itself.

4. FATF’s last Mutual Evaluation of Singapore was as long ago as 2019 – yet the following issues are not being addressed by FATF:

• Singapore's Temasek Soblin Wealth Fund was operated by Mrs. Ho Cin from January 1 to 2021, 2004. Although it is a rich country like Singapore, there is a claim that the return from Temasek to the Singapore people is doubtful. It is not unreasonable to think that Ho Chin is still exercising a great influence in Temasek.
• The 1MDB Malaysia's stain, which Claire Lew Castor Brown 10 exposed and brilliant, extend throughout Singapore and Asia, but FATF and Singapore have not scrutinized them effectively.
• Corruptions and bribes from China, Indonesia and Malaysia are rampant. The flow of funds from weapon sales to Myanmar/ Burma (FATF Blacklist Country) and connection to North Korea (FATF blacklist country) is the current scandal of $ 20 or more, recent 1MDB Malaysia and other exposure, 2023. It is clear that Singapore is an important promoter in North Korean trade, such as the year BAT US $ 629m fine. A report by the United Nations Myanmar situation in May 2023 reveals that Singapore's 138 suppliers have traded $ 247 million with Myanmar Army. 11 < SPAN> Singapore's current more than $ 2 billion scandal is another example in which countries and regions, which should be "clean", are struggling to treat unauthorized overseas outflow. This has been pointed out by Transparency International for several years, but it does not seem to admit itself.
• Singapore's Temasek Soblin Wealth Fund was operated by Mrs. Ho Cin from January 1 to 2021, 2004. Although it is a rich country like Singapore, there is a claim that the return from Temasek to the Singapore people is doubtful. It is not unreasonable to think that Ho Chin is still exercising a great influence in Temasek.
• The 1MDB Malaysia's stain, which Claire Lew Castor Brown 10 exposed and brilliant, extend throughout Singapore and Asia, but FATF and Singapore have not scrutinized them effectively.

5. OCCRP’s investigation into Singapore’s $2BN+ Money Laundering scandal is damning – OCCRP investigations are often a precursor to major reputational fallouts.

Corruptions and bribes from China, Indonesia and Malaysia are rampant. The flow of funds from weapon sales to Myanmar/ Burma (FATF Blacklist Country) and connection to North Korea (FATF blacklist country) is the current scandal of $ 20 or more, recent 1MDB Malaysia and other exposure, 2023. It is clear that Singapore is an important promoter in North Korean trade, such as the year BAT US $ 629m fine. A report by the United Nations Myanmar situation in May 2023 reveals that Singapore's 138 suppliers have traded $ 247 million with Myanmar Army. The 11th Singapore's current $ 2 billion $ 2 billion scandal is another example in which countries and regions, which should be "clean", are struggling with unauthorized overseas leakage processing. This has been pointed out by Transparency International for several years, but it does not seem to admit itself.

• Singapore's Temasek Soblin Wealth Fund was operated by Mrs. Ho Cin from January 1 to 2021, 2004. Although it is a rich country like Singapore, there is a claim that the return from Temasek to the Singapore people is doubtful. It is not unreasonable to think that Ho Chin is still exercising a great influence in Temasek.
• The 1MDB Malaysia's stain, which Claire Lew Castor Brown 10 exposed and brilliant, extend throughout Singapore and Asia, but FATF and Singapore have not scrutinized them effectively.
• Corruptions and bribes from China, Indonesia and Malaysia are rampant. The flow of funds from weapon sales to Myanmar/ Burma (FATF Blacklist Country) and connection to North Korea (FATF blacklist country) is the current scandal of $ 20 or more, recent 1MDB Malaysia and other exposure, 2023. It is clear that Singapore is an important promoter in North Korean trade, such as the year BAT US $ 629m fine. A report by the United Nations Myanmar situation in May 2023 reveals that Singapore's 138 suppliers have traded $ 247 million with Myanmar Army. 11
• While official corruption is rampant in Singapore, as cited in Temasek’s clear conflict of interest, there is little room for independent scrutiny compared to market environments in other developed countries around the world. There is clear evidence that the rich Singapore economy, in terms of cash flows, does not spend money on the Central Provident Fund (CPF), housing (HDB) and healthcare (except during COVID periods), with inflows appearing to exceed outflows every year. For example, the housing (HDB) recorded a deficit of $4. 4 billion in FY21, and the latest HDB annual report for FY22/23 showed a new record deficit of $5. 38 billion. The real reason for this is that Singaporeans are being charged high valuations by the Singapore state for land without this being reflected in the HDB’s cash flows. This is an example of public sector corruption and hospitality in Singapore, and another key element that FATF overlooks. As Reuters reported in July 2023, when Singapore's Minister of Transport S. Iswaran and real estate tycoon and Hotel Properties CEO Ong Beng Seng were arrested in a rare entertainment investigation, "Singaporean ministers are paid handsomely to thwart entertainment, with some earning annual salaries of more than S$1 million (US$75. 8 million)." 12
• Singapore's censorship laws are so strict that civil servants are easily protected, and local scholars and journalists are prevented from independent critical analysis and subjected to little scrutiny. Criticism of Singapore by journalists and scholars is swiftly killed and replaced with a retracted apology. 13
• OCCRP's investigation uncovered significant concerns, including:
• Suspected money launderers from China arrested in Singapore purchased about $60 million worth of prime real estate in London in 2021, according to company and land records examined by OCCRP and Radio Free Asia.
• The criminal organization was laundering illegal fraud and online gambling proceeds.
• In mid-August, Singapore police seized at least S$1. 8 billion ($1. 32 billion) in cash, cryptocurrency, luxury goods and other assets.
• Police collected 50 vehicles and 94 real estate (equivalent to about 600 million yen) in Singapore. The reporter found three London real estate purchased in December 2021 for $ 56 million in December 2021. The biggest transaction was to purchase two adjacent real estate at the London's best shopping district, Oxford Circus, at the same time. It was jointly acquired by a jerse y-based corporation called New Ehao Limited, and has been listed as Sue Hygin as the only "individual beneficiary."
• Suzo was arrested in Singapore and had at least $ 117 million assets related to him and his wife, including 13 real estate, five luxury cars, and cash accounts.
• About a week before the Oxford Circus was settled, another suspect arrested in Singapore purchased a Canary Wharf Penthouse in London for £ 1. 8 million ($ 2. 2 million).

Major International Banks Dragged into Singapore’s $2BN+ Money Laundering Chaos

London's property seemed to be sold in cash because the mortgage was not registered.

Lin and his partner Jang Lujin were arrested in Singapore, and authorities confiscated more than $ 100 million assets and cash.

6. FATF President Singapore Facilitating Trade with FATF Black Listed Myanmar/Burma and North Korea.

FATF Has Lost Credibility With Singapore’s FATF Presidency 2022-24

Like the other suspects arrested, Sue is from Fujian, China, famous for the background of the crime. He has a Chinese passport and also has Cambodia and EU Cyprus passports.

According to China's company registration data, Wu Chin, a citizen of EU Cyprus, also dominates a handful of technologies and investment companies without concrete tasks and websites. They run several Hong Kong companies, most of which are registered for Hong Kong ($ 0. 13). Sue is a chairman of the Cambodian company.

In recent years, illegal online gambling and fraud have been rapidly expanding throughout Southeast Asia. Many of them are targeted to mainland China, which is illegally operated in an inadequate economic zone, and is prohibited. Did FATF check the role of Indonesia?

According to Jersey's corporate record, Fidchi Group, a financial service provider, supported the new Yihao organization two months before purchasing real estate. The jersey registration data also states that one of the Fizuchi Group's customers is a luxury yacht brokerage company Imperial Yacht. The IMPERIAL YACHTS and the owner Evgeniy Kochman were sanctioned in 2022 in 2022, saying that Russia had helped hide the assets of Russia.

Singapore's over 2 billion dollars have a major international bank, and one of the suspects, Van Schuimin, had an account for about 92 million Singapore dollars in Credit Switzerland. Ban had an account at Gulias Bear Bank (33 million Singapore dollars), Singapore's United Overseas Bank and RHB Bank in Malaysia. Ban's other charges include the counterfeit of bank documents that deceived the US City Bank Singapore.

Such exposure indicates that Singapore's current investigations on AML scandals are struggling to fight Asian local crimes and corruption as a judicial jurisdiction. 。 It is clear that Singapore banks and Asian banks often have to be responsible for the implementation of due to duudality, KYC, and standard banking. International banks need to be alert to business development in Singapore, which has long been praised as an Asian financial hub. Its reputation is now clearly lost.

• The global financial system should be supported by a reliable financial hub. It is not a country that has fallen into more than 2 billion dollars, such as Singapore, but is a country that can definitely control the flow of fraudulent funds from overseas.
• The Royal Tokui, who was caught in Singapore's $ 2 billion scandal, has been nominated in China for illegal online gambling, and according to a court document seen by Bloomberg News after the king's bail hearing. Hong Kong UBS, China Kogyo Bank, and Bank of China were deposited $ 500, 000, and $ 500, 000. According to Bloomberg, more than 10 domestic and overseas banks may have been caught in the scandal. 15
• However, it must be noted that Singapore is taking larg e-scale corrections. In the first place, it is concern that such measures are not necessary at all, even though the management system of Singapore, which prevents fraudulent financial activities, should have been sufficient. It is the management system itself that the FATF should have pursued with regular mutual evaluation of member countries. From 2022 to 24, FATF, where Singapore is the current chairman, will be responsible.
• In 2022-24

FATF President 2022-24 Singapore – Facilitator for BAT’s US $629M 2023 Economic Sanctions Fine for Trading with FATF Black Listed North Korea

In a final blow to Singapore, FATF-wise, Justice for Myanmar is calling on Singapore to literally (...) take up arms, given its scandalous levels of arms trade with the Myanmar military. While Myanmar is on the FATF blacklist, Singapore is responsible for around $247 million in trade with the Myanmar military. Justice for Myanmar

CONCLUSION: Add Singapore to FATF’s Grey List as a “Jurisdiction Under Increased Monitoring” To Save FATF’s Credibility?

Independent activist group Justice for Myanmar, through its Dirty Over 30 project, is calling on Singapore to:

Major International Financial Hubs Like Singapore Inevitably Attract Illicit Finance, but…

Introduce sanctions to block direct and indirect transfers of arms, dual-use goods and technology to the Myanmar military.

Introduce sanctions to block direct and indirect transfers of arms, dual-use goods and technology to the Myanmar military.

Expedite and publicize ongoing investigations into Singaporean companies that have provided arms, dual-use goods and technology to the Myanmar military.

Singapore’s $2bn+ Money Laundering Shows That FATFs Evaluations Are Inadequate…

Strengthen sanctions by other ASEAN countries against the Myanmar military and companies doing business with the Myanmar military.

A Whole New World for the Financial Action Task Force?

As if Singapore’s involvement with the Myanmar military wasn’t enough, British American Tobacco’s (BAT) involvement in facilitating illicit trade to North Korea on the FATF blacklist has resulted in BAT being hit with a $629 million U. S. sanctions penalty in April 2023. British American Tobacco and subsidiary BAT Marketing Singapore (BATMS), one of the world’s largest suppliers of tobacco products, have agreed to pay a combined penalty of more than $629 million to settle charges of bank fraud and sanctions violations with the United States in connection with a scheme to conduct business in North Korea through a Singaporean third party in violation of the Bank Fraud Act and the International Emergency Powers Act (IEEPA). BAT pleaded guilty to a federal indictment in the District of Columbia charging BAT and BATMS with conspiracy to commit bank fraud and conspiracy to violate the IEEPA. BAT entered into a deferred prosecution agreement (DPA) regarding the charges. 17

For the FATF to maintain its credibility, it will have no choice but to consider adding Singapore to the FATF grey list, regardless of whether Singapore takes up the FATF presidency in 2022-24. Singapore has made remedial efforts to rectify its $2 billion+ money laundering problem, but it clearly has a mountain to climb to get its own order. Singapore is clearly used as a hub to facilitate trade between Myanmar/Burma and North Korea, two of the three FATF blacklists, in the midst of 1MDB, Temasek, Keppel, and the current $2 billion+ money laundering scandal.

Nevertheless, as a major financial hub like Singapore, which is located at the intersection of Asian trade, is underestimating the flow of many fraudulent assets, as other major financial hubs around the world are. I can't. However, in order for the international trade and financial community to work effectively on this stage, it requires transparency and certainty. Therefore, it is necessary to specify the jurisdiction of the judicial jurisdiction, which has a hardship like Singapore, as a top performer in real time-especially in real time-especially in real time. If the transparency International does not even include a money laundering prevention performance in its corruption recognition index (CPI) review.

New Decade, New Methodology

Exposure over Singapore is well known, and FATF will think that there is no choice but to take positive actions. It is certain that Singapore's reliability as a FATF chairman from 2022 to 2014 has been questioned. It is clear that immediately for the reputation of FATF and Singapore, urgent correction measures are indispensable. It is inevitable that Singapore will be an international monitoring.

Dance Bank 2022 U. S. Money Laundering Federation of Money Laundering is expected to be $ 2 billion, apart from many US surveys in the United States at the time by OCCRP and Denmark's major Shimbun Berlingske Tidende, Michael Lunde and others. It was a detailed survey. Denmark and Denmark journalists, like Lund, his colleagues, should be praised for their frankness and professionalism that has dugged facts related to Danceke Bank Scandal. < SPAN>, but the main financial hubs like Singapore, which are located at the intersection of Asian trade, captures the flow of many fraudulent assets, as other major financial hubs around the world are. Cannot be underestimated. However, in order for the international trade and financial community to work effectively on this stage, it requires transparency and certainty. Therefore, it is necessary to specify the jurisdiction of the judicial jurisdiction, which has a hardship like Singapore, as a top performer in real time-especially in real time-especially in real time. If the transparency International does not even include a money laundering prevention performance in its corruption recognition index (CPI) review.

Exposure over Singapore is well known, and FATF will think that there is no choice but to take positive actions. It is certain that Singapore's reliability as a FATF chairman from 2022 to 2014 has been questioned. It is clear that immediately for the reputation of FATF and Singapore, urgent correction measures are indispensable. It is inevitable that Singapore will be an international monitoring.

Dance Bank 2022 U. S. Money Laundering Federation of Money Laundering is expected to be $ 2 billion, apart from many US surveys in the United States at the time by OCCRP and Denmark's major Shimbun Berlingske Tidende, Michael Lunde and others. It was a detailed survey. Denmark and Denmark journalists, like Lund, his colleagues, should be praised for their frankness and professionalism that has dugged facts related to Danceke Bank Scandal. Nevertheless, as a major financial hub like Singapore, which is located at the intersection of Asian trade, is underestimating the flow of many fraudulent assets, as other major financial hubs around the world are. I can't. However, in order for the international trade and financial community to work effectively on this stage, it requires transparency and certainty. Therefore, it is necessary to specify the jurisdiction of the judicial jurisdiction, which has a hardship like Singapore, as a top performer in real time-especially in real time-especially in real time. If the transparency International does not even include a money laundering prevention performance in its corruption recognition index (CPI) review.

Unintended Consequences

Exposure over Singapore is well known, and FATF will think that there is no choice but to take positive actions. It is certain that Singapore's reliability as a FATF chairman from 2022 to 2014 has been questioned. It is clear that immediately for the reputation of FATF and Singapore, urgent correction measures are indispensable. It is inevitable that Singapore will be an international monitoring.

Global Cohesion

Dance Bank 2022 U. S. Money Laundering Federation of Money Laundering is expected to be $ 2 billion, apart from many US surveys in the United States at the time by OCCRP and Denmark's major Shimbun Berlingske Tidende, Michael Lunde and others. It was a detailed survey. Denmark and Denmark journalists, like Lund, his colleagues, should be praised for their frankness and professionalism that has dugged facts related to Danceke Bank Scandal.

FATF, as a global anti-illicit finance body, should be mindful that the supposed controls and mutual evaluations of member countries (for example, Singapore) are not working, and would be better off redirecting its efforts to more regular and up-to-date reviews of member countries, rather than issuing endless reports and redefinitions of illicit finance “types.” “Surprise” like the latest scandal involving over $2 billion in Singapore is beneficial for the entire global financial community, recent scandals aside. International financial hubs like Singapore should be subject to more rigorous and regular scrutiny than once every four years or so (the last FATF mutual evaluation of Singapore was in…2019).

With the next country evaluations starting, the new FATF President has a lot of work to do in the next two years.

At the Financial Action Task Force (FATF) General Assembly in June, Elisa de Anda Madrazo was appointed as Chair, replacing Raja Kumar. Madrazo’s appointment comes at a pivotal time for the FATF, as it has just begun a new round of mutual evaluations (the process by which the FATF evaluates countries’ compliance with its standards) with a new methodology, its fifth since the organization was established. At the same time, the FATF is operating in an increasingly fragmented geopolitical environment, dealing with the ongoing impacts of Russia’s illegal invasion of Ukraine and attempting to manage tensions with countries in the Global South that feel unfairly targeted or marginalized by the FATF.

Keeping the Fire Alight

Elisa de Anda Madrazo is no stranger to the FATF, having previously served as Vice-President from 2020 to 2023. Madrazo’s priorities, ratified at the FATF’s most recent plenary meeting, demonstrate a welcome understanding of the challenges the FATF faces and outline how it plans to address these challenges over the next two years.

Beyond Anti-Money Laundering

FATF released its revised fifth round methodology and universal procedures in May 2024. The methodology is comprehensive and includes many notable updates. It is not surprising that effectiveness is at the center of the new methodology, with almost all of the effectiveness criteria accompanied by detailed notes to assessors. This should provide clear direction for assessors and help bring consistency to the scores of mutual evaluations conducted over the next decade. Of particular note is the inclusion of a methodology focused on effective outcomes in combating proliferation financing, an oft-overlooked area of ​​FATF's mandate.

Citation

Dance Bank 2022 U. S. Money Laundering Federation of Money Laundering is expected to be $ 2 billion, apart from many US surveys in the United States at the time by OCCRP and Denmark's major Shimbun Berlingske Tidende, Michael Lunde and others. It was a detailed survey. Denmark and Denmark journalists, like Lund, his colleagues, should be praised for their frankness and professionalism that has dugged facts related to Danceke Bank Scandal. < SPAN>, but the main financial hubs like Singapore, which are located at the intersection of Asian trade, captures the flow of many fraudulent assets, as other major financial hubs around the world are. Cannot be underestimated. However, in order for the international trade and financial community to work effectively on this stage, it requires transparency and certainty. Therefore, it is necessary to specify the jurisdiction of the judicial jurisdiction, which has a hardship like Singapore, as a top performer in real time-especially in real time-especially in real time. If the transparency International does not even include a money laundering prevention performance in its corruption recognition index (CPI) review.

Another major change is the separation of the assessment of the effectiveness of risk-based supervision over financial (including virtual asset service providers) and non-financial sectors into two "Immediate Outcomes." Supervision of the sector, referred to in FATF terminology as designated non-financial businesses and professions, has always been a challenge. FATF's recently published horizontal review of technical compliance with the relevant recommendations shows a stark difference in compliance among FATF member states, with the United States, Australia, and China all scoring zero. And while some countries have perfect or near-perfect scores on technical compliance, many have long-term issues with effectiveness.

For those who have followed Elisa de Anda Madrazo's career, it will come as no surprise that financial inclusion is one of the new president's priorities. For many years, it has been a topic she has advocated for, and she was Vice President when the FATF announced its initial work to mitigate the unintended consequences of the misapplication of its standards. One of the major projects underway at the FATF is the possible modification of Recommendation 1, the foundational recommendation that sets out a risk-based approach. This work aims to refine Recommendation 1 to encourage countries to apply reduced standards, including simplified due diligence (SDD), in cases where the risk of money laundering, terrorist financing, and proliferation financing is low. Excessive compliance, or "gold plating" (where countries or institutions apply a higher level of due diligence than is justified by the risk), is a major barrier to financial inclusion. Incentivizing the increased use of SDD is a crucial step in bringing more people into the formal, regulated financial system. One of the notable features of the FATF architecture is the relationship between the Nordic countries, which are often full members of the FATF, and the Southern European countries, which, with some exceptions, are generally members of FATF-Style Regional Bodies (FSRBs). Both the FATF and some of the FSRBs sometimes seem to be unhappy with this relationship. Some FSRBs still feel that they have less influence at the FATF level, especially compared to the Global North countries that are full members. Countries from the Southern Hemisphere make up the majority of the FATF's "grey list," and the consequences of being placed on the grey list could be far-reaching, especially for developing economies. At the same time, the different structures, resources, and levels of expertise of the various FSRBs complicate the way in which the FATF engages with the FSRBs.

The Future of the FATF

Subscribe to the CFS Newsletter

Receive the Center for Financial Security Studies (CFS) newsletter every month.

Strengthening the partnership between the FATF and the FSRBs was one of the priorities of the previous chairman and will remain one of the most important challenges for the FATF in the coming years. For those who have followed Elisa de Anda Madrazo's career, it will come as no surprise that financial inclusion is one of the new president's priorities. For many years, it has been a topic she has advocated for, and she was vice-president when the FATF announced its initial work to mitigate the unintended consequences of the misapplication of its standards. One of the major projects underway at the FATF is the possible modification of Recommendation 1, the foundational recommendation that sets out a risk-based approach. This work aims to refine Recommendation 1 to encourage countries to apply reduced standards, including simplified due diligence (SDD), when the risks of money laundering, terrorist financing, and proliferation financing are low. Excessive compliance, or "gold plating" (where countries or institutions apply a higher level of due diligence than is justified by the risk), is a major barrier to financial inclusion. Incentivizing the increased use of SDD is a crucial step in bringing more people into the formal, regulated financial system. One of the notable features of the FATF architecture is the relationship between the Nordic countries, which are often full members of the FATF, and the Southern European countries, which, with some exceptions, are generally members of FATF-Style Regional Bodies (FSRBs). Both the FATF and some of the FSRBs sometimes seem to be unhappy with this relationship. Some FSRBs still feel that they have less influence at the FATF level, especially compared to the Global North countries that are full members. Countries from the Southern Hemisphere make up the majority of the FATF's "grey list," and the consequences of being placed on the grey list could be far-reaching, especially for developing economies. At the same time, the different structures, resources, and levels of expertise of the various FSRBs complicate the way in which the FATF engages with the FSRBs.

Subscribe to the CFS Newsletter

Receive the Center for Financial Security Studies (CFS) newsletter every month.

Strengthening the partnership between the FATF and the FSRBs was one of the priorities of the previous chairman and will remain one of the most important challenges for the FATF in the coming years. For those who have followed Elisa de Anda Madrazo's career, it will come as no surprise that financial inclusion is one of the new president's priorities. For many years, it has been a topic she has advocated for, and she was Vice President when the FATF announced its initial work to mitigate the unintended consequences of the misapplication of its standards. One of the major projects underway at the FATF is the possible modification of Recommendation 1, the foundational recommendation that sets out a risk-based approach. This work aims to refine Recommendation 1 to encourage countries to apply reduced standards, including simplified due diligence (SDD), in cases where the risk of money laundering, terrorist financing, and proliferation financing is low. Excessive compliance, or "gold plating" (where countries or institutions apply a higher level of due diligence than is justified by the risk), is a major barrier to financial inclusion. Incentivizing the increased use of SDD is a crucial step in bringing more people into the formal, regulated financial system. One of the notable features of the FATF architecture is the relationship between the Nordic countries, which are often full members of the FATF, and the Southern European countries, which, with some exceptions, are generally members of FATF-Style Regional Bodies (FSRBs). Both the FATF and some of the FSRBs sometimes seem to be unhappy with this relationship. Some FSRBs still feel that they have less influence at the FATF level, especially compared to the Global North countries that are full members. Countries from the Southern Hemisphere make up the majority of the FATF's "grey list," and the consequences of being placed on the grey list could be far-reaching, especially for developing economies. At the same time, the different structures, resources, and levels of expertise of the various FSRBs complicate the way in which the FATF engages with the FSRBs.

• Subscribe to the CFS Newsletter
• Receive the Center for Financial Security Studies (CFS) newsletter every month.
• Strengthening the partnership between the FATF and the FSRBs was one of the priorities of the previous chairman and will remain one of the most important challenges for the FATF in the coming years.

• Raja Kumar's inauguration has welcomed assets. Asset collection is often postponed, and has been very limited to success. The new President has commited to continue Kumar's focus on improving the effectiveness of global asset collection mechanisms. In the previous mutual evaluation, most countries achieved only low or moderate effectiveness. In 2023, recommendations 4 and 38 were changed to strengthen global initiatives on asset collection. This includes that each country recommends recovering assets as national priority, and to introduce more flexible means, such as confiscation based on no n-violations. If the revised recommendation is made well, it will be possible to deal with the low asset collection rate, but it is still a thorny road, and it is unlikely that the revised recommendation will be solved.

• When the FATF was established in 1989, the only focus was on money laundering. In the last 35 years, its scope has expanded to terrorist funding and diffusion funding. These were not always suitable.