FATF Report on Proliferation Financing & Sanctions Evasion

Key takeaways from the report include:

➡️ The report reveals major weaknesses in the global fight against financing of weapons of mass destruction.

➡️ Only 16% of countries effectively implement targeted financial sanctions under United Nations Security Council Resolutions.

➡️ The report identifies four evasion typologies: using intermediaries, obscuring beneficial ownership, exploiting virtual assets (e.g., the $1.5 billion ByBit hack), and misusing maritime shipping channels.

➡️ It highlights key obstacles to effective enforcement, insufficient public-private cooperation, lack of shared financial intelligence, and inconsistent domestic coordination.

✅ Firms should review their CPF and sanctions risk assessments to ensure the evasion typologies highlighted in the report are appropriately identified and addressed by control frameworks.

💡 Plenitude’s Advisory & Transformation Service conducts Business-Wide Risk Assessments, helping clients to assess inherent and residual financial crime risks. Visit our website for more information: https://www.plenitudeconsulting.com/services/advisory-and-transformation