The U.S. Department of the Treasury has endorsed new international payment standards and FATF reports to counter illicit finance, including terrorism and proliferation financing.
The FATF plenary in Strasbourg updated reports on how groups like Hamas and Hizballah raise funds, while modernizing payment standards to enhance transparency by 2030.
Modernizing Payment Standards
The Financial Action Task Force (FATF) has updated Recommendation 16 to modernize standards for domestic and cross-border payments.
This update aims to incorporate non-bank financial institutions, promoting transparency and efficiency by 2030. These changes align with G20 priorities for faster, more transparent payments.
Secretary of the Treasury Scott Bessent emphasized the importance of these updates, stating,
The FATF plays an important role in the global fight to counter terrorism and proliferation financing.
Addressing Illicit Finance
The FATF plenary agreed on updated reports detailing how terrorist groups such as Hamas, Hizballah, and the Houthis raise and move funds.
Additionally, it focused on how illicit actors evade sanctions linked to Iran, North Korea, and Russia. These efforts are part of broader initiatives to strengthen global financial security.
International Cooperation
- U.S. leadership in endorsing FATF initiatives strengthens global financial governance.
- Collaboration with European partners through MONEYVAL enhances regional anti-money laundering measures.
- Procedural changes protect non-profits from undue pressure while maintaining security measures.
- Private sector engagement is crucial for implementing updated payment standards effectively.
Virtual Assets Regulation
The FATF published two new reports on virtual assets highlighting progress and challenges in regulating these assets to combat illicit finance.
These developments reflect ongoing efforts to adapt regulatory frameworks in response to evolving financial technologies.
Additional Reading
To Sum Up
The U.S.’s endorsement of new international payment standards reflects a commitment to enhancing global financial security.
By addressing terrorism financing and modernizing regulatory frameworks, these efforts aim to foster international cooperation while safeguarding legitimate humanitarian activities from undue scrutiny.
Sources: U.S. Department of the Treasury.
Prepared by Ivan Alexander Golden, Founder of THX News™, an independent news organization delivering timely insights from global official sources. Combines AI-analyzed research with human-edited accuracy and context.
