Methodology for the 5th Round of Mutual Evaluations

As amended in February 2024.

The FATF took stock of the results in the 4th round of mutual evaluation to adjust its methodology for the assessment in the 5th round of mutual evaluations. It looked at what was going well, and the areas where countries needed to improve their performance.

Using this information, the FATF made a number of changes to the Methodology and Procedures that will apply to the next round of mutual evaluation, which will start when all members have been assessed against the current Methodology, as adopted in 2013. The revised 5th Round Methodology is published for information only, it is not yet in effect.

• The next round of mutual evaluations will be a six-year cycle, significantly shorter than earlier rounds, which lasted 10 years on average.
• This round will strenghten the focus on effectiveness, to ensure that countries are implementing and making use of the laws, regulations and policies that are in place. 
• There will also be a greater emphasis on the major risks and context. This will ensure that countries, and the assessors reviewing them focus on the areas where the risks are highest. 
• Mutual evaluations in the next round will assess the effectiveness of the financial sector and the non-financial businesses and professions separately. This will provide a clearer overview of the level of effectiveness of these distinct areas, and stronger, more targeted recommendations for improvement. 
• Recommendations from the mutual evaluation reports will be more results-oriented, focusing on specific actions and timelines to tackle money laundering, terrorist financing and the financing of weapons of mass destruction.