The world is transforming rapidly, upending traditional arrangements and sparking concern and celebration.
For some, these changes are alarming; for many others, they represent long-awaited progress.
The FATF, long regarded as the unchallenged global standard-setter in anti-money laundering and combating the financing of terrorism (AML/CFT), now faces a pivotal moment.
Fragmentation in the global financial, trade, and economic arena is no longer a distant possibility—it is an accepted reality.
The rise of a multipolar world, marked by demands for dignity, independence, equality, and sovereignty, is reshaping the international order.
Countries in the Global South, many of which are members of FATF Style Regional Bodies (FSRBs), are increasingly vocal about their desire for a more equitable and inclusive global financial and regulatory system.
Madam President de Anda Madrazo’s recent initiatives, such as inviting Senegal and the Cayman Islands to participate in FATF meetings, and appointing GIABA as a temporary member of the FATF Steering Group, suggest an awareness of these shifting dynamics.
These tentative moves could be deemed as demonstrative of a willingness to engage with the FSRB community and address ongoing concerns about fairness and inclusion.
Fragmentation poses significant challenges for the FATF. The organization’s ability to set and enforce effective implementation of global AML/CFT standards will continue to be tested.
Countries from the Global South will assert with increasing force and credibility, the need for adherence to democratic principles and demand a greater voice in decision-making processes.
The next two years will be critical for the FATF and its regional bodies. The refrain of dignity, independence, equality, and sovereignty will grow louder, The FATF must respond with agility, foresight and adaptability in order to remain effective.
Madam President de Anda Madrazo has the opportunity to lead the FATF through this transformative period.
Her diplomatic skills can help overcome psychological barriers towards change among her FATF colleagues, paving the way for a more inclusive and collaborative approach.
By embracing the winds of change, she can lay the foundation for a new world regulatory order that reflects the realities of a multipolar world.
The upcoming March 2025 Mumbai FATF Private Sector Collaborative Forum provides a valuable opportunity to generate ideas and foster global collaboration. The event could serve as the first step in shaping a more inclusive and equitable future for the FATF and its stakeholders.
The FATF stands at a crossroads as it navigates this constantly shifting landscape.
The rise of a multipolar world demands a reimagining of the FATF's role and future relevance.
The world is watching. The time to act is now.