The Financial Action Task Force (FATF) strengthens Measures related to Domestic Co-operation, and Coordination (R.2) and Prevention of the Financing of Proliferation of Weapons of Mass Destruction (R.1)

In June 2019, the FATF agreed to pursue further work to strengthen the FATF Standards on countering the financing of proliferation (CFP). Following a public consultation on the draft amendments to Recommendation 1 and its Interpretive Note, the October 2020 FATF Plenary approved revisions to the FATF Recommendations. The revised Recommendation 1 and its Interpretive Note require countries and private sector entities to identify, assess, manage and mitigate the risks of potential breaches, non-implementation, or evasion of the targeted financial sanctions related to proliferation financing (PF).

The FATF also adopted changes to Recommendation 2 and a new Interpretive Note to Recommendation 2 (INR.2), to enhance domestic co-operation, co-ordination and information exchange among national authorities.

The FATF and CFATF Procedures (paragraph 4) require that countries be evaluated on the basis of the FATF Recommendations and Interpretative Notes, and the Methodology as they exist at the time of the country’s on-site visit. However, the FATF Plenary agreed to develop Guidance to assist countries and the private sector in assessing and mitigating the proliferation financing risk and further agreed that the FATF will begin assessing jurisdictions for implementation of these new requirements (related to R.1, INR.1, R.2 and INR. 2) at the start of the next (fifth) round of mutual evaluations, to allow time to put the necessary measures in place.

The full public statement can be read here.