Prelims: Current events of national and international importance| International Relations
Why in News?
FATF concluded its Plenary meeting in Paris (October 28–30, 2026), under the UK Presidency of Giles Thomson, announcing measures to combat virtual asset crimes, fraud and scam compounds.
About FATF
- Established – 1989, during the G7 Summit.
- Headquarters – Paris, France.
- Nature – Intergovernmental organisation.
- Objective – Combat money laundering, terrorist financing and proliferation financing.
Proliferation financing relates to financing weapons of mass destruction (WMDs).
- Key role – Develops international standards through its 40 Recommendations.
- Membership – Its Global Network covers over 200 jurisdictions and observers.
- Russia's FATF membership suspension continues.
- India and FATF – India became a FATF member in 2010.
- Key agencies involved include FIU-IND, Enforcement Directorate, RBI, NIA and SEBI.
Key Outcomes of the 2026 Plenary
- Virtual Asset Regulation – Accelerated implementation of FATF standards on Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs).
- Targeted reviews will identify regulatory gaps, with findings expected in June and October 2027.
- Action Against Fraud – Elevated fraud and scam compounds as a global priority.
- Approved a report examining illicit financial flows linked to scam compounds and criminal networks.
- Changes in FATF Grey List – Removed Bulgaria, Côte d’Ivoire, Democratic Republic of the Congo and Monaco from increased monitoring following successful completion of action plans.
- High-Risk Jurisdictions –
- Myanmar – Called for action against extensive fraud and scam activities.
- Iran – Called for criminalisation of terrorist financing and targeted financial sanctions.
- Vietnam – Expressed concern over slow progress in addressing strategic deficiencies.
- FATF Grey List vs Black List
- Grey List – Jurisdictions under increased monitoring that have committed to address identified deficiencies through action plans.
- Black List – High-risk jurisdictions subject to a call for action, including enhanced due diligence and, where required, countermeasures.
Reference
TH Businessline| FATF steps up global crackdown on virtual asset crimes
