FATF Concludes Plenary in Paris with Focus on Virtual Assets and Scam Compounds

The inaugural Financial Action Task Force (FATF) Plenary meeting under the UK Presidency of Giles Thomson concluded in Paris following discussions on global action to address evolving financial crime threats, including the misuse of virtual assets, fraud, and scam compounds. The Indian delegation, led by Department of Revenue Additional Secretary Neetu Prasad alongside Ministry of Culture Secretary and FATF Vice-President Vivek Agrawal and senior representatives from the Ministry of External Affairs, RBI, FIU, NIA, NSCS and other relevant agencies, attended the meeting held in Paris.

According to the FATF statement of outcomes, the Plenary agreed to accelerate the implementation of FATF Standards on virtual assets (VAs) in jurisdictions with materially important VA activity. This response follows the FATF Ministerial Declaration of April 2026 to strengthen defences against the misuse of virtual assets for money laundering, terrorist financing, and proliferation financing.

To address growing risks, the Plenary approved a new report focused on ending illicit financial flows linked to scam compounds, which will be published next week. The report aims to help authorities dismantle integrated criminal business models and professionalised crime-as-a-service operations globally. Additionally, the FATF will launch a targeted review and accelerated follow-up process for jurisdictions with materially important VA sectors, with results scheduled for publication in June and October 2027.

In country-specific updates, the FATF removed Bulgaria, Côte d’Ivoire, the Democratic Republic of the Congo, and Monaco from its list of jurisdictions under increased monitoring following successful on-site visits and the completion of their respective Action Plans. Conversely, the FATF expressed significant concern regarding the pace of progress in Vietnam and noted it will consider next steps if tangible improvements are not made by the next plenary.

The FATF also updated public statements on high-risk jurisdictions on the Black List, reinforcing its call on Myanmar to address extensive fraud and scam activities, and on Iran to criminalise terrorist financing and establish targeted financial sanctions. Furthermore, the suspension of membership for Russia remains in place.

The Plenary adopted mutual evaluation reports for Mexico and the United States, assessing their effectiveness in combating financial crimes and compliance with FATF Recommendations. These reports are slated for publication in December 2026 following a quality and consistency review. The FATF additionally announced plans to host a Learning and Development Forum in Dallas, Texas, on December 1 and 2 to discuss risk assessment and supervisory culture.

Delegates from over 200 jurisdictions and observers gathered in Paris from October 28 to 30. Representatives from Barbados, Namibia, and Thailand participated under their own flags for the first time via the FATF Guest Initiative.

"The tightening of global standards on virtual assets and scam compounds by the FATF indicates a stricter compliance environment for financial institutions and digital asset service providers worldwide. Businesses operating in the fintech and virtual asset sectors must proactively align their internal risk management, anti-money laundering, and compliance frameworks with these evolving international benchmarks. Staying ahead of regulatory expectations will be critical for sustainable operations and risk mitigation in cross-border financial transactions." — Dr. Shishir Gupta, Founder & CEO, StartupLanes