FATF focus on criminal asset recovery points to a more investigatory role for compliance

Global organised crime is booming, and only 1 to 2 percent of the $4 trillion black economy is intercepted, according to figures from the Financial Action Task Force (FATF). Its new guidance suggests that countries should focus on rapid investigations, collaborative intelligence gathering, and confiscating the proceeds of criminal activity. It also highlights the criticality of identifying the beneficial owners of assets.

The guidance, Asset Recovery Guidance and Best Practices, was published on Nov 16. It suggests that confiscating the proceeds of crime is a more effective deterrent than a jail sentence. Assets that are seized can then be used to compensate victims and fund further enforcement activities – creating a virtuous circle.

FATF President Elisa de Anda Madrazo said in the report: “Recovering criminal assets is not an afterthought – it has a real impact on lives around the world and demonstrates that justice systems work.” She added that the guidance equips countries to act faster, search further, and think bigger about asset recovery. “We must send a clear message: crime will not pay.”