In a speech to the United Nations Security Council, Financial Action Task Force (FATF) President Elisa de Anda Madrazo outlined FATF’s latest assessment of terrorist financing trends and set out priorities to strengthen global counter-terrorist financing (CFT) implementation, with a particular focus on digital transformation and virtual assets. She highlighted FATF’s Comprehensive Update of Terrorist Financing (TF) Risks completed in June 2025, co-led with the UN Counter-Terrorism Committee Executive Directorate and France, drawing on input from over 80 jurisdictions and 800 contributions from private sector institutions and academia. The update points to continued use of the formal financial system (including deposit accounts, wire transfers and prepaid cards) alongside rising abuse of social media, messaging applications and crowdfunding with integrated payments, increasing use of virtual assets and obfuscation techniques (including ISIL-K’s reported use of virtual assets in 2024 for organisational transfers and international donations), and a growing threat from lone actors using microfinancing from licit funds, petty crime and technology-enabled methods such as online gambling and social media features. FATF’s recommended priorities include making multilateral designations under UN sanctions regimes a key priority alongside regional and national mechanisms under UN Security Council Resolution 1373, strengthening implementation of global CFT standards by improving investigation and prosecution capacity (noting fewer than a third of countries are doing so adequately), closing loopholes in areas such as virtual asset service providers and transparency of legal persons, expanding outreach to non-traditional stakeholders including online platforms, and applying a risk-based and proportionate approach that does not impede humanitarian activity conducted in accordance with international law.
Financial Action Task Force 2025-08-20
Financial Action Task Force calls for stronger counter-terrorist financing implementation and tighter controls on digital platforms and virtual assets in UN Security Council briefing
FATF President Elisa de Anda Madrazo addressed the UN Security Council, emphasizing the need to enhance global counter-terrorist financing (CFT) efforts, particularly in digital transformation and virtual assets. The FATF's June 2025 update highlights misuse of financial systems and social media for terrorist financing, with increased virtual asset use and lone actor threats. Key priorities include strengthening CFT standards, closing loopholes, and expanding outreach to non-traditional stakeholders.