The Financial Action Task Force of Latin America reported that, together with El Salvador's Attorney General's Office, it carried out an unannounced simulation from 20 to 30 April 2026 to test the country's implementation of targeted financial sanctions arising from potential matches with United Nations Security Council sanctions lists on terrorist financing and proliferation financing. The seventh exercise assessed whether El Salvador can apply these measures without delay under Financial Action Task Force Recommendations 6 and 7 and identified both good practices and areas where the national system needs strengthening. The simulation covered scenarios linked to the sanctions regime under United Nations Security Council Resolution 1267 and subsequent resolutions. It reviewed end-to-end national arrangements, including coordination among competent authorities, communication to obliged entities, asset freezing and unfreezing procedures, and the understanding and application of international standards. Authorities, financial institutions and virtual asset service providers participated, allowing a practical assessment of operational response and highlighting issues around the timeliness of responses, consistency of procedures, and treatment of specific cases covered by the standard.
Financial Action Task Force of Latin America (GAFILAT)2026-06-09
Financial Action Task Force of Latin America completes El Salvador targeted financial sanctions simulation and identifies areas to strengthen
The Financial Action Task Force of Latin America and El Salvador's Attorney General's Office conducted an unannounced simulation to test El Salvador’s implementation of targeted financial sanctions related to UN Security Council terrorist and proliferation financing lists under Recommendations 6 and 7. The exercise reviewed national arrangements and participation by authorities, financial institutions and virtual asset service providers, identifying good practices and weaknesses in timeliness, procedural consistency and case handling.