Paris, France – June 2025 – The Financial Action Task Force (FATF) has published a new report detailing complex proliferation financing (PF) and sanctions evasion schemes, providing valuable insights into the evolving tactics used to bypass targeted financial sanctions.

The report highlights how illicit actors—especially those linked to weapons of mass destruction (WMD) programs—exploit vulnerabilities in global financial systems. It examines typologies involving front and shell companies, trade-based laundering, misuse of virtual assets, and non-financial sectors, often in highly coordinated networks spanning multiple jurisdictions.

Key findings include:

• The use of layered corporate structures and intermediaries to obscure beneficial ownership.
• Evasion techniques exploiting dual-use goods trade, deceptive shipping practices, and digital finance.
• Case studies involving designated entities from North Korea and Iran, revealing gaps in international compliance and enforcement.

The FATF urges countries, financial institutions, and private sector actors to:

• Strengthen implementation of Recommendation 7 (targeted financial sanctions related to proliferation).
• Improve risk-based controls, especially in high-risk sectors and jurisdictions.
• Enhance information sharing across borders and between public and private sectors.

This report aims to support more effective identification, disruption, and prosecution of PF-related activities and to help both governments and industry better understand and mitigate associated risks.

About FATF
The Financial Action Task Force is the global standard-setter in combating money laundering, terrorist financing, and proliferation financing. It promotes effective implementation of legal, regulatory, and operational measures to safeguard the international financial system.

For more information and full report, please visit: www.fatf-gafi.org.