Financial action task force fatf, international standards on combating money laundering and the financing of terrorism and proliferation. An overview congressional research service 1 introduction the financial action task force on money laundering is composed of 35 member countries and territories and two regional 1organizations and was organized to develop and promote policies to. Pdf an international analysis of fatf recommendations and. Netherlands in response to the recommendations of this mutual evaluation. The guidance on criminalising terrorist financing will help countries implement each of the requirements of recommendation 5. Amlcft colleges guidelines 1 jc 2019 81 16 december 2019 final report on joint guidelines on cooperation and information exchange for the purpose of directive eu 2015 849 between competent authorities. The fatf recommendations set out a comprehensive and consistent framework of measures. The recommendations were revised for the first time in 1996 and then again in. The 40 recommendations provide a complete set of countermeasures against money laundering mlcovering. Fatf recommendation 5 provides measures to assist countries in fulfilling the legal requirements of the international convention for the suppression of the financing of terrorism the terrorist financing convention, and relevant united nations security council resolutions. The fatf recommendations are the internationally endorsed global standards against money laundering and terrorist financing.
Standards of the financial action task force fatf 2. The financial action task force fatf, formed in 1989 by the g7 economic summit, is dedicated to promoting the development of effective antimoney laundering and counterterrorism finance laws and programs and enhancing cooperation among its membership and around the world. The mutual evaluation report of italy on compliance with the fatf recommendations. Official website of the caribbean financial action task force. The last mutual evaluation report relating to the implementation of antimoney laundering and counterterrorist financing standards in lebanon was undertaken by the financial action task force fatf in 2009. Targeted financial sanctions related to terrorism and terrorist financing details fatf 40 recommendations. Outcomes of the fatf plenary meeting, paris, 2123 october 2015 paris, 23 october 2015 under the korean presidency, the first fatf plenary meeting of plenary year fatf xxvii was held on 2123 october 2015. Countries should consider measures to facilitate access to beneficial ownership and control information by financial institutions and dnfbps undertaking the requirements set out in recommendations 10 and 22. The measurement of these levels of compliance is a difficult exercise given differing legal and financial systems, levels of resources and competing national priorities. The fatf recommendations are the internationally endorsed global standards. Germany1 chaired the fourteenth round 20022003 of the financial action task force fatf. The reference to criminal activity in recommendation 20 refers to all criminal acts that would constitute a predicate offence for money laundering or, at a minimum, to those offences that would constitute a predicate offence, as required by recommendation 3.
In recent years, the financial action task force fatf 1 has noted increasingly sophisticated combinations of techniques, such as the increased use of legal persons to disguise the true ownership and control of illegal proceeds, and an increased use of. Fatf special recommendations on terrorist financing recognising the vital importance of taking action to combat the financing of terrorism, the fatf has agreed these recommendations, which, when combined with the fatf forty recommendations on money laundering, set out the basic framework to detect, prevent and. Fatf recommendations 2012 download pdf 1,717kb the fatf secretariat participated in the financial crime symposium hosted by the law society of england and wales on 15 may 2012 in london, united kingdom. Outcomes of the fatf plenary meeting, paris, 2123 october 2015 paris, 23 october 2015 under the korean presidency, the first fatf plenary meeting of plenary year fatfxxvii was held on 2123 october 2015.
This paper examines the antimoney laundering systems of australia, the united arab emirates uae, the united kingdom uk and the united states of america usa, the extent to which they have implemented the financial action task force fatf recommendations, and how compliance with these recommendations is affected by local cultural and economic factors. Consolidated fatf standards on information sharing which clarifies the types of information that should be shared, when it should be shared and the safeguards and protections that should apply to. Text of the recommendation and interpretative note see also. The financial action task force fatf is an independent intergovernmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destructionthe fatf recommendations are. The financial action task force fatf is an independent inter governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The forty recommendations introduction money laundering methods and techniques change in response to developing countermeasures. Financial action task force fatf antimoney laundering.
The fatf recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. Feb 22, 20 countries and financial institutions should identify and assess the money laundering or terrorist financing risks that may arise in relation to a the development of new products and new business practices, including new delivery mechanisms, and b the use of new or developing technologies for both new and preexisting products. Financing of terrorist organisation isil pdf, 758kb. Fatf recommendations financial action task force fatf.
The fatf conducted an assessment of switzerlands antimoney laundering and counterterrorist financing amlcft system, based on the 2012 fatf recommendations. The fatf recommendations, the international antimoney laundering and. Jan 08, 2019 fatf is composed of 38 member states, covering most of the major financial centers of the world. Mar 04, 2015 the financial action task force fatf has published the outcomes of the plenary meeting that it held in paris during 2527 february 2015. Fatf recommendations duhaimes antimoney laundering. Transnational npo working group on fatf recommendations. The fatf recommendations by financial action task force issuu. The financial action task force was established by the g7 summit in paris in july 1989 to examine measures to combat money laundering. G20 leaders at the summit in hamburg on 78 july, expressed their determination to fight terrorist financing. Countries and financial institutions should identify and assess the money laundering or terrorist financing risks that may arise in relation to a the development of new products and new business practices, including new delivery mechanisms, and b the use of new or developing technologies for both new and preexisting products. The fatf reported to the g20 on its ongoing efforts in this area, including work to increase transparency and beneficial ownership of legal persons and legal arrangements, and to strengthen the fatf s governance and institutional basis. Industry update fatf eu funds transfer regulation sep 2015.
Fatf recommendations adopted on 16 february 2012, and updated in february 20, october 2015, june 2016, october 2016, june 2017 and november 2017 see also information on updates made to the fatf recommendations. Each of these member states has pledged to come into compliance with the forty recommendations, and to measure its progress. Money laundering and fatf compliance by the international. Financial action task force on money laundering annual report 1990, pdf. Designated nonfinancial businesses and professionals. Sep 20, 2016 this is underlined by the financial action task forces fatf 2012 recommendationsparticularly recommendation 16which specifies the need for financial institutions to provide information not just about the originator of a payment, but also the beneficiary. The fatf has developed a comprehensive set of guidance and best practices to assist jurisdictions in their implementation of the fatf recommendations.
The fatf calls upon all countries to effectively implement these measures in their national systems. Outcomes of the fatf plenary meeting, paris, 2123 october. For more information about the fatf, please visit the website. Annual report 2014 2015 by financial action task force issuu. The financial action task force fatf is an independent intergovernmental body that develops and promotes policies to protect the global financial system. The bank supports the initiatives and recommendations of the fatf and requires of all banks and clearing system participants to ensure that any electronic funds transfer, as described below, meet the requirements of recommendation 16, attached as annexure a. In response to mounting concern over money laundering, the financial action task force fatf was established by the g7 in 1989 to develop and promote policies, both at the national and international level, to combat money laundering. Financial action task force on money laundering groupe d. Does the financial action task force fatf help or hinder financial inclusion. An international analysis of fatf recommendations and compliance by dnfbps article pdf available in procedia economics and finance 28. Procedures for the fatf fourth round of amlcft mutual evaluations pdf. The fatf develops and promotes global standards for combating money laundering and terrorist financing.
Background document for guidance on strategies for. It is amed at assessing the degree to which its members have implemented the recommendations of the fatf and cfatf. Countering terrorism or constraining civil society. Annual report 20152016 financial action task force. Financial institutions, their directors, officers and employees should be. Recommendations marked with an asterisk have interpretive notes, which should be read in. The fatf recommendations are the internationally endorsed global.
Financial action task force on money laundering wikipedia. The fatf recommendations are recognised as the global antimoney laundering aml and counterterrorist financing cft standard. Fatf releases guidance on correspondent banking services. Cfatf procedures for the fourth round of amlcft mutual evaluations updated 14 march 2018. In addition, fatf recommendation 5 goes beyond the international legal obligation to further. The full text of the 40 recommendations, glossary and interpretative notes return to the fatf 40 recommendations page. The fatf forty recommendations on money laundering and counter terrorism finance. An international analysis of fatf recommendations and. Fatf recommendations documents financial action task force. October 2015, revision of the interpretive note to r. In recent years, the financial action task force fatf 1 has noted increasingly sophisticated combinations of techniques, such as the increased use of legal persons to disguise the true ownership. Assessing technical compliance with the fatf recommendations and the effectiveness of amlcft systems 3 table of acronyms table of acronyms amlcft antimoney laundering countering the financing of terrorism also used for combating the financing of terrorism bni. Definition of nonprofit organisation for the purposes of the new recommendation 8 and its interpretive note, the fatf has redefined non.
Annual report 20152016 financial action task force fatf. Does the financial action task force fatf help or hinder. The united states is expected to undergo a comprehensive assessment against the fatf s revised standard and methodology beginning june 1, 2015. The key tool for this assessment is the methodology for assessing compliance with the fatf 40 recommendations and the fatf 9 special recommendations. The parisbased financial action task force fatf has released its longawaited guidance on the application of fatf standards in the context of correspondent banking services following its plenary session held october 1921st, 2016. Channel 4 news, london haven for global financial crime activity, 29 january 2015. Work on terrorist financing, which remains the top priority for the fatf, including. May 20, 2018 the circumstances surrounding the fatf decision have cast a question mark over its credibility and timing. Directive eu 2015 849 of the european parliament and of the council of 20 may 2015.
The fatf recommendations updated november 2017 geldwasche. Singapore has recently issued mas notice 626 to implement the. The financial action task force on money laundering fatf, also known by its french name, groupe daction financiere gafi, is an intergovernmental organization founded in 1989 on the initiative of the g7 to develop policies to combat money laundering. Outcomes of the plenary meeting of the fatf, paris, 2527. Estimating money laundering risks vrije universiteit amsterdam.
Outcomes of the fatf plenary meeting, paris, 2123 october 2015. The fatf recommendations set out a comprehensive and consistent framework of measures which countries should implement in order to combat money laundering and terrorist financing, as well as the financing of proliferation of weapons of mass destruction. Fatf jeyoon shin fatf president 2015 2016 8 fatf annual report 2015 2016 the terrorist threat to all countries and the scale of worldwide corruption highlighted by the panama papers demonstrates the ongoing need for countries to fully implement the fatf recommendations. In 1990, the fatf issued forty recommendations to address this problem. It has 36 members covering the worlds major financial centers. The impact of financial action task force recommendations on nonprofit organisations in central and eastern europe and central asia this report was produced by statewatch in collaboration with. In addition, fatf recommendation 5 goes beyond the international legal obligation to further strengthen the measures that countries should have at their disposal to disrupt terrorist financing. The full text of the 40 recommendations, glossary and interpretative notes return to the fatf 40 recommendations. In june 2003, the financial action task force fatf revised its recommendations to cover ter ror ist financing. The outcomes states that the main issues dealt with by fatf during this plenary were. In some cases, the fatf recommendations themselves or the wish to protect nonprofit organizations npos from abuse were stated as the official reason, while in others one can only assume that restrictions are linked to the intended. The financial action task force fatf is an intergovernmental policymaking body whose purpose is to establish international standards, and to develop and promote policies, both at national and international levels, to combat money laundering and the financing of terrorism. Risk based approach guidance for legal professionals pdf. Caribbean financial action task force cfatf the caribbean financial action task force cfatf was designed to encourage the coordination of and the participation in antimoney laundering and terrorist financing training programmes.