The FATF has published on 20 June 2025. a report on Complex Proliferation Financing and Sanctions Evasion Schemes which reveals that significant vulnerabilities remain across the global financial system in countering the financing of weapons of mass destruction (WMD).
The report highlights that unless both the public and private sectors urgently bolster technical compliance and effectiveness, those seeking to finance WMD proliferation will continue to exploit weaknesses in existing controls.
Based on submissions from across the FATF Global Network, the report identifies four major typologies used in sanctions evasion:
- Use of intermediaries to evade sanctions
- Obscuring beneficial ownership information (BOI) to access the financial system
- Using virtual assets and other technologies
- Exploiting the maritime and shipping sectors
To support countries in responding to these challenges, the report outlines common enforcement obstacles and shares examples of good practices, such as public-private partnerships to improve information sharing, and the issuing of detailed alerts to make it easier for financial institutions to file Suspicious Transaction Reports.
The report highlights the need for a more coordinated and globally consistent response—one that aligns with existing international obligations and reflects the complexity of current PF and sanctions evasion schemes, as well as the catastrophic consequences that failure to act could entail. The report can be accessed here