Procedures for the FATF AML/CFT/CPF Mutual Evaluations, Follow-Up and ICRG

As amended in May 2024

The FATF conducts mutual evaluations and follow‑up monitoring for its members' effectiveness in tackling money laundering, terrorist financing and the financing of proliferation of weapons of mass destructions as well as the level of technical implementation of the FATF Standards. In the context of the work of its International Co-operation Review Group (ICRG), the FATF also identifies and works with countries and jurisdictions from across the Global Network with strategic deficiencies in this area. 

This document sets out the procedures that are the basis for those mutual evaluation, follow‑up and ICRG processes and should be read in conjunction with Consolidated Processes and Procedures for AML/CFT/CPF Mutual Evaluations and Follow-up (Universal Procedures) the FATF Methodology. 

• The assessment sequence will be based on three factors - the time since a country’s last assessment, its level of ML/TF risks and the relative size of its economy and financial sector.  This ensures that the FATF assesses in priority the countries whose assessments are most outdated, that face higher risks and have important financial sectors.
• After their mutual evaluation, countries will have three years to take action and address the deficiencies. If they fail to do so, they will automatically face a range of measures, including the possibility of the FATF publicly raising concerns about outstanding deficiencies. 
• The follow-up assessment process is results-oriented, focusing on specific actions to tackle money laundering, terrorist financing and the financing of weapons of mass destruction.
• The round of mutual evaluations based on the 2023 Methodology will be a six-year cycle. The shorter cycle, greater scrutiny and strong follow-up mechanisms will ensure that governments stay focused on taking effective action to detect, prevent and punish money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction.

The FATF amended its assessment procedures and methodology in 2022. The FATF commenced its 5th round of evaluations in 2024, using these revised Procedures.

The Procedures for the FATF Fourth Round of AML/CFT Mutual Evaluations and the 2013 FATF Methodology for assessing compliance with the FATF Recommendations and the effectiveness of AML/CFT systems will continue to apply to countries being evaluated and those engaged in follow-up processes under the 4^th round of evaluations.