Paris, 10 July 2017. G20 Leaders at the summit in Hamburg on 7-8 July, expressed their determination to fight terrorist financing. The FATF reported to the G20 on its ongoing efforts in this area, including work to increase transparency and beneficial ownership of legal persons and legal arrangements, and to strengthen the FATF’s governance and institutional basis
G20 leaders issued a detailed statement on Countering Terrorism. On fighting terrorist financing, the statement highlights a number of issues that the FATF is focusing on, and that are priorities for the Argentine Presidency of the FATF over the next year.
- The G20 calls on all countries to shut down all alternative sources of financing of terrorism, including dismantling the possible connections between terrorism and organized crime, such as through human trafficking. In line with this and following the call by the United Nations in Security Council Resolution 2331, for the FATF and FATF-Style Regional Bodies to analyse the links between human trafficking and terrorist financing, the FATF will update and deepen its understanding of financial flows associated with human trafficking, including those that are ending up in the hands of terrorist organisations.
- The G20 will focus on Fintech, Financial Intelligence Units and Banks in developing new tools and technologies to track terrorist financing. This echoes the efforts that FATF has undertaken over the last year, which resulted in the San Jose Principles, and which will remain an important issue during the Argentinean Presidency of the FATF.
- The G20 recognises that FATF has evolved since it was created as a temporary forum 27 years ago and it supports FATF’s focus on strengthening its institutional basis, especially by empowering the President’s role while interacting with member countries, other stakeholders and the general public. FATF will continue these discussions at its next Plenary.
The G20 Hamburg Action Plan highlights G20 support for FATF work on improving transparency and access to beneficial ownership through the effective implementation of the FATF Standard. This work includes:
- A recent report on inter-agency information sharing and guidance for private sector information sharing that is currently open to a public consultation.
- Ongoing research into the vulnerabilities linked to beneficial ownership, in collaboration with the Egmont Group of Financial Intelligence Units.
- A study on the effective enforcement and supervision of beneficial ownership obligations.
G20 Leaders called on FATF to provide a further progress report in early 2018.
The G20 welcomed FATF efforts to assess and address the decline in correspondent banking relationships, and financial access for money remittance providers, in collaboration with the FSB and Global Partnership for Financial Inclusion (GPFI).
Continued support by the G20 and its members, and their commitment to lead by example and ensure that they have fully and effectively implemented the FATF Standards will protect the integrity of the financial system and contribute to safety and security.
G20 Hamburg 2017 Action Plan
G20 Summit 2017 - Leaders' Declaration
G20 Summit 2017 - Statement on Countering Terrorism