FATF Concludes Fifth Plenary in Mexico City, Advances Illicit Finance Fight and Digital Asset Oversight

FATF Convenes in Mexico City Under Mexican Presidency

The Financial Action Task Force (FATF) concluded its fifth Plenary meeting under the two-year Mexican Presidency of Elisa de Anda Madrazo in Mexico City from February 11 to 13, 2026. The Plenary marked the culmination of FATF Week, which commenced on February 9, bringing together over 600 delegates from across the FATF Global Network of more than 200 jurisdictions to discuss critical issues in combating illicit finance.

President de Anda Madrazo, whose term began on July 1, 2024, and is set to conclude on June 30, 2026, presided over discussions that advanced several key initiatives aimed at strengthening global anti-money laundering (AML), countering the financing of terrorism (CFT), and countering proliferation financing (CPF) efforts.

Key Initiatives and Digital Asset Oversight

A significant outcome of the Plenary was the agreement to publish two new reports on digital assets. These reports are designed to help countries address emerging risks and support responsible innovation in finance. Specifically, one report assesses and proposes ways to mitigate illicit finance risks posed by the misuse of stablecoins and unhosted wallets. The second report focuses on good practices and challenges associated with mitigating risks related to offshore digital asset service providers (oVASPs).

The FATF also approved a new paper on cyber-enabled fraud, recognizing it as a 'fraud epidemic' with growing scale and reach. This document outlines how FATF standards can be utilized to counter criminals exploiting instant payments, social engineering tactics, and global digital platforms.

Country-Specific Assessments and Sanctions

During the Plenary, the FATF adopted Mutual Evaluation Reports for Austria, Italy, and Singapore. These reports assess the effectiveness of each country's measures to combat money laundering, terrorist financing, and proliferation financing, as well as their compliance with FATF Recommendations.

Furthermore, the FATF imposed additional countermeasures on Iran, reiterating the significant terrorist and proliferation financing risks emanating from the country. The organization called upon all jurisdictions to implement re-imposed United Nations Security Council Resolutions and to impose further restrictions on correspondent banking, digital asset transactions, and business relationships with Iran due to its severe illicit finance risks.

Strategic Priorities and Global Network Cohesion

The Plenary also saw the approval of the FATF's strategic priorities for 2026 to 2028, which will be presented to ministers for endorsement in April. Measures were also agreed upon to increase the voice and participation of FATF-Style Regional Bodies (FSRBs) in the FATF's work, aiming to strengthen cohesion across the Global Network of over 200 jurisdictions.

In a significant leadership transition, Mr. Giles Thomson of the United Kingdom was appointed as the incoming President of the FATF, with his term scheduled from July 2026 to June 2028. Additionally, Kuwait and Papua New Guinea were added to the list of jurisdictions under increased monitoring.