The US Treasury Department said that international organizations will strengthen monitoring of financial flows aimed at evading US and UN sanctions, as well as the proliferation of weapons of mass destruction.
The new action standards have been approved by the Financial Action Task Force on Money Laundering (FATF). This intergovernmental organization was created within the framework of the G7 in 1989, and is engaged in the development of world standards in the field of combating money laundering and the financing of terrorism.
According to the US Treasury Department, North Korea and Iran have organized a complex chain of shell companies registered in many FATF member countries. These structures are used to avoid US and UN sanctions and to fund operations that pose a threat to the international community.
Washington began pushing for changes to the FATF’s work standards to combat money laundering in 2018-2019, when the United States chaired this intergovernmental group.
The FATF is currently led by Germany. This structure unites 37 states, the European Commission and the Cooperation Council for the Arab States of the Gulf.
“Partnering with the FATF is vital to combat illicit financial activities around the world, including fraud related to the COVID-19 pandemic, funding for arms proliferation and other priorities,” said US Treasury Secretary Stephen Mnuchin.