FATF Report June 2025: Complex Proliferation Financing And Sanctions Evasion

In June 2025, the Financial Action Task Force (FATF) published a detailed report examining the evolving threat of complex proliferation financing (PF) and sanctions evasion schemes. These schemes, which often support the development and distribution of weapons of mass destruction (WMDs), pose a growing risk to both international security and the global financial system. This article outlines the key findings of the report, including threats and methods of PF and sanctions evasion, as well as the recommendations made to counter these threats.

Continuing Threat Posed by the DPRK

The report highlights how state and non-state actors continue to exploit gaps in counter-proliferation financing (CPF) controls. The Democratic People's Republic of Korea (DPRK) remains the most significant threat in this regard. Despite nearly two decades of international sanctions, the DPRK has managed to advance its nuclear and missile capabilities by diversifying its revenue streams.