Upcoming FATF Plenary on February 21-23 to Focus on Beneficial Ownership and Legal Transparency

February Plenary of the Financial Action Task Force (FTAF) will take place in Paris, from 21 to 23 February, marking the culmination of FATF week which begins on 19th February. This will be the fifth FATF Plenary session under the two-year Singapore Presidency of T. Raja Kumar.

Representatives from over 200 Global networks and observer organizations such as the International Monetary Fund, the United Nations, the World Bank, INTERPOL, and the Egmont Group of Financial Intelligence Units, will attend the meetings in Paris during FATF week, as per FATF’s press release.

Delegates will deliberate on critical subjects like the impact of the rapid evolution of cross-border payment technologies and guide countries in risk-based adoption of Recommendation 25 addressing beneficial ownership and transparency in legal arrangements. The discussions will also be centered on the advancements made in certain jurisdictions recognized as threats to the global financial systems.

The Risk-based guidance applies to all stakeholders within the private and public sectors engaged in regulatory, supervisory, monitoring, establishing, managing, or administering trusts or analogous legal entities. It primarily emphasizes adhering to requirements outlined in Recommendations 25, while also addressing the unique features of the trusts and transparency in anti-money laundering/counter-terrorist financing obligations.

A press conference is scheduled by the FATF President on 23rd February to declare the outcomes of the Plenary.

The fourth plenary of the FATF took place on 25-27th October in Paris. The key themes of the plenary were focused on tackling concerns like crowdfunding for terrorist financing and combatting illicit transfer of funds from cyber-enabled fraud.  The week-long series of meetings also stressed the need to assist countries in detecting, monitoring, and preventing financial networks supporting criminal activities.

During the February 2023 plenary session, FATF approved amendments to Recommendations 25, focusing on beneficial ownership and legal transparency, and pledged to immediately commence the process of revising Recommendations 25 to facilitate the implementation of updated regulations.

Also read: FATF Opens Public Consultation for Recommendation 25 on Beneficial Ownership