FATF Unveils New Global Guidance to Strengthen Criminal Asset Recovery Efforts

On the 4th of November, the Financial Action Task Force (FATF) has released new guidance and best practices designed to accelerate international efforts to trace, seize, and recover criminal assets. The initiative comes in response to concerning figures from Interpol and the United Nations Office on Drugs and Crime (UNODC), which reveal that only a small fraction of illicit funds are ever confiscated. According to FATF assessments, over 80% of jurisdictions are currently performing at low or moderate levels of effectiveness in asset recovery.

In an effort to address these gaps, the FATF has issued a comprehensive Asset Recovery Guidance and Best Practices document, emphasizing that stripping criminals of their illicit gains is as essential as prosecuting them. The FATF stressed that dismantling the financial incentives behind criminal activity is key to disrupting and deterring organized crime, terrorism, and large-scale fraud across the globe.

The newly published guidance delves into critical areas such as modern financial investigations, swift asset freezing and confiscation, protection of individual rights, and mechanisms for compensating victims through recovered funds. FATF President Elisa de Anda Madrazo underscored the human impact of these measures, stating: “Recovering criminal assets is not an afterthought — it has a real impact on lives around the world and demonstrates that justice systems work. This detailed guidance equips countries to act faster, search further, and think bigger when it comes to asset recovery. We must send a clear message: crime will not pay.”

Comprising more than 85 real-world examples and practical recovery techniques, the guidance reflects contributions from experts across the FATF Global Network and spans all stages of investigative and judicial processes. Among the case studies highlighted are several notable successes: in the United States, blockchain analysis enabled investigators to trace over USD 400 million in illicit transactions, which courts accepted as reliable evidence. In another instance, a fund created from confiscated assets allowed more than 40,000 victims to recover 91% of their financial losses.

In Switzerland, authorities ordered the confiscation of more than CHF 313 million, which was subsequently placed into a multi-stakeholder fund designed to benefit communities affected by large-scale corruption. Meanwhile, in Mongolia, proceeds from a confiscated London property are being used to support an orphanage that houses and educates over 300 children.

This new guidance is closely aligned with the major revisions made to FATF’s Recommendations in 2023, which expanded the global framework for the recovery of illicit proceeds. The handbook aims to help countries implement these updated standards through a combination of practical tools, advanced investigative methods, and strategies to improve confiscation outcomes.

Structured into eight chapters, the publication targets a wide range of users including policymakers, law enforcement and prosecutorial bodies, judicial authorities, and officials from justice and foreign affairs ministries. It also serves as a resource for asset managers, trainers, technical assistance providers, as well as the private sector and civil society organizations, all of whom play a role in advancing asset recovery efforts.

The FATF reiterated its call for jurisdictions worldwide to make asset recovery both a policy and operational priority. By adopting the new guidance, countries are expected to enhance the integrity of the global financial system and deliver better results for victims and communities affected by financial crime.

By fLEXI tEAM