FATF President Highlights Global Failures in Criminal Asset Recovery

The vast majority of nations are failing to effectively confiscate criminal assets, according to a stark warning from Elisa de Anda Madrazo, President of the Financial Action Task Force (FATF). This widespread inability, she noted, has allowed criminal activities to flourish unchecked, with significant consequences for global security and justice.

“Almost 80% of countries are at a low or moderate level of effectiveness on asset recovery. This is a stark reality,” Ms. De Anda stated, addressing participants at the FATF’s Joint Experts Meeting in Vienna. The event, hosted by the United Nations Office on Drugs and Crime (UNODC), brought together over 150 operational experts from more than 60 countries to discuss pressing issues related to combating crime and recovering illicit assets.

“80% of countries around the world are not able to achieve significant outcomes in confiscating criminal property. This not only allows criminals to benefit monetarily but gives life to their future operations,” she added.

The FATF President also highlighted a troubling statistic: globally, less than 2% of the proceeds of crime are currently being confiscated. “It is critical that we act, act now, act together, and take more creative action to deprive criminals of their ill-gotten gains,” she urged.

Her remarks underscored the importance of fostering international collaboration in tackling asset recovery challenges. She called on participants at the meeting to work collectively to “foster a culture of asset recovery around the globe.”

Since taking over as FATF President in late 2023, Ms. De Anda has made improving asset recovery a central focus of the organization’s efforts to combat money laundering and related crimes. Last year, the FATF declared asset recovery a key pillar of each country’s approach to addressing money laundering. Member nations are now expected to implement measures that enhance their asset recovery powers, signaling a renewed commitment to targeting the financial infrastructure of criminal enterprises.

The Vienna meeting provided a platform for experts to exchange ideas and strategies, reflecting the FATF’s broader mission to strengthen international cooperation and create more effective mechanisms to strip criminals of their illicit wealth. Ms. De Anda’s call to action highlighted the urgency of addressing this global issue, emphasizing the need for creative, coordinated efforts to turn the tide against organized crime and its financial underpinnings.

By fLEXI tEAM