UK FATF Mutual Evaluation Taskforce: First Meeting Report

Every decade or so, countries are assessed on their technical compliance with the Recommendations of the Financial Action Task Force (FATF) on money laundering, terrorist financing and proliferation financing and on the effectiveness of the measures that they have put in place. The on-site visit for the UK’s next evaluation is scheduled for August 2027 and preparations will begin in earnest in 2025. While the UK has generally been regarded as having a robust legal and regulatory framework, FATF’s increasing focus on the effectiveness of a country in managing money laundering, terrorist financing and proliferation financing risks means that technical compliance with the Recommendations alone is not enough.

The UK’s last evaluation, in 2018, was positive overall, however, some areas of significant weakness were identified. The UK has sought to address these over the last decade, but has it done enough? How will the UK fare when it comes to its effectiveness ratings? How will the changes in methodology for this round of evaluations impact the assessment of the UK? What about new areas, such as the FATF’s recommendations on virtual assets and the strengthening of its recommendations on asset recovery?

To help answer these questions, the Centre for Finance and Security (CFS) at RUSI has established a UK FATF Taskforce, bringing together a small group of experts to explore these areas and provide practical recommendations on how the UK can best prepare for its upcoming evaluation. The Taskforce held its first meeting in October 2024, and this report sets out the themes that emerged during that meeting.