Fraud
Industry News
The report outlines significant updates to global (AML/CFT) standards, fraud prevention measures and supervisory expectations.
Key updates include:
➡️ Updated Payment Transparency: Major revisions to Recommendation 16, finalised in June 2025, strengthened cross-border payment traceability, clarified responsibilities of ordering/intermediary/beneficiary institutions, and introduced tools to reduce fraud and error;
➡️ Fraud Priority: Fraud now features in 89% of evaluations, driving increased FATF focus on fraud-linked laundering risks;
➡️ Sanctions & Proliferation: There’s growing sophistication in sanctions evasion, including the use of trade-based schemes, shell entities and virtual assets;
➡️ Virtual Assets & Travel Rule Implementation: Global compliance with Recommendation 15 remains uneven. FATF continues to push for stronger implementation of the Travel Rule and AML-by-design controls;
➡️ Risk-Based Approach: Updated guidance reinforces proportionate AML controls while supporting financial inclusion;
➡️ Asset Recovery Focus: Global asset recovery effectiveness remains low. The next round of evaluations will place greater emphasis on confiscation outcomes and demonstrable impact; and
➡️ New Evaluation Cycle: More impact-focused reviews, with six-year assessment cycle and time-bound remediation roadmaps.
✅ Banks and financial institutions should assess payment controls, fraud risk frameworks, sanctions and proliferation exposure, and asset recovery processes considering FATF’s improved expectations.
