The original fatf forty recommendations were drawn up in 1990 as an initiative to combat the misuse of financial systems by persons laundering drug money. Third mutual evaluation on antimoney laundering and combating the financing of terrorism jan 2008. The fatf recommendations in the light of financial inclusion objectives. On september 17, 20, the financial crimes enforcement network fincen published an advisory concerning recent updates by the financial action task force fatf to its designation of jurisdictions with strategic antimoney launderingcounterterrorist financing amcctf deficiencies. Against this backdrop, this paper builds on the 20 new payment products and services npps guidance fatf, 20 by suggesting a conceptual framework for understanding and addressing the money laundering countering the financing anti of terrorism amlcft risks associated with one kind of internetbased payment system. Fatf annual report 2012 20 by financial action task. Fatfs list of highrisk and noncooperative jurisdictions fatf public statement issued october 18, 20 1. In june 20, the fatf adopted the guidance on politically exposed persons recommendations 12 and 22. The 2012 fatf recommendations require that countries identify, assess and understand the money. Financial action task force on money laundering groupe d. The fatf recommendations set out a comprehensive and consistent framework of measures which countries should. Fatf oecd, fatf 40 recommendations, fatf standards, financial action task force, 2010. The financial action task force fatf the g20 anticorruption working groupand jointly convened an experts meeting on corruption on saturday, 12 october 20. Fraudrelated money laundering was considered the highest risk and accounted for 70% of the money laundering investigations between 202017, whereas.
Countries all references in the fatf recommendations to country or countries apply equally to territories or jurisdictions. The june 20 followup report contains a detailed description and analysis of the actions taken by ireland in respect of all recommendations rated pc or noncompliant nc in the 2006 mutual evaluation report including the core, the key and all other recommendations. The revised guidance, reflects the changes made to the fatf recommendations in 2012 and. The amlcft standards set by the fatf recommendations are important tools. In addition to fatfs forty plus nine recommendations, in 2000 fatf issued a list of noncooperative countries or territories nccts, commonly called the fatf blacklist.
Cfatf procedures for the fourth round of amlcft mutual evaluations updated 14 march 2018. The fatf recommendations are the internationally endorsed global standards against money laundering and terrorist financing. 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. Transnational npo working group on fatf recommendations. The fatf recommendations, therefore, set an international standard, which countries should implement through measures adapted to their particular circumstances.
The fatf recommendations are recognised as the global antimoney. The fatf standards comprise the recommendations themselves and their interpretive notes, together with the applicable definitions in the glossary. Transnational npo working group on fatf working group1 submit the following recommendations, based on our research and input from members. The fatf recommendations set out a comprehensive and consistent.
The financial action task force was established by the g7 summit in paris in july 1989 to examine measures to combat money 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. Pdf fatf recommendations related to dnfbps on anti money. The initial list of fifteen countries regarded as uncooperative in the fight against money laundering, was published in june 2000. Fatf recommendations duhaimes antimoney laundering.
Fatf 202019, methodology for assessing compliance with the fatf recommendations and the. In 1990, the fatf issued forty recommendations to address this problem. Adopted in 20, these procedures were revised at the june 2019 plenary. This presentation provides an overview of the asian development banks report to the fatf on its compliance to the recommendations of the task force. Overview of compliance with fatf recommendations author. 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. The fatf public statement, which is reprinted below and can be found on the fatf website, cites specific concerns regarding each of the jurisdictions and calls for action on the. Fatf publications 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. When the oecds financial action task force fatf revised its 40 recommendations on combating money laundering and terrorist financing in 2012, adding serious tax crimes to the list of predicate offences, it was duly noted by the regions authorities even if legislation did not change.
Presidents summary of outcomes from the experts meeting on corruption. Provisions and guidelines on the detection and deterrence of. Fatf 2008, terrorist financing, fatf, paris, france. Since early 20, dialogue between fatf and the working group has engendered a deeper understanding of how the npo sector identifies and responds to the threat of terrorist abuse.
On february 22, 20, at the fatf plenary, the fatf adopted the recommendations of the icrg and publicly identified jurisdictions with strategic amlcft deficiencies. 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. Antimoney laundering and terrorist financing measures fatf. 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. 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. The list met criticism from professionals experienced in the offshore financial sector.
Money laundering and terrorist financing vulnerabilities of legal professionals. Fatf recommendations documents financial action task force. Fatf guidance on countering proliferation financing pdf. Terrorist financing in west africa pdf, 755kb fatf. Fatf recommendations financial action task force fatf. Procedures for the fatf fourth round of amlcft mutual evaluations pdf. During these mutual evaluations, which currently are. Financial action task force 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 destruction. And notice is given that fatfs public statement dated october 18, 20 identified the following high risk and non cooperative jurisdictions which were noncompliant or not sufficiently compliant with its recommendations. Countries have diverse legal, administrative and operational frameworks and different financial systems, and so cannot all take identical measures to counter these threats. Fatf recommendations 2012 download pdf 1,717kb the fatf secretariat participated in the financial crime symposium hosted by the law society of england. Provisions and guidelines on the detection and deterrence.
The forty recommendations introduction money laundering methods and techniques change in response to developing countermeasures. The full text of the 40 recommendations, glossary and interpretative notes return to the fatf 40 recommendations page. Ireland was placed in the regular followup process as a result of a partially compliant pc rating for certain core and key recommendations in its mutual evaluation report of june 2006 the june 20 followup report contains a detailed description and analysis of the actions taken by ireland in respect of all recommendations rated pc or noncompliant nc in the 2006 mutual evaluation. Recommendations issued by the fatf define criminal justice and regulatory measures that should be. 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 destruction. Please set out if, and if so, how, you used the 2007. This 2017 edition combines the fatf supplement with the original 20 guidance. In october 2012, the financial action task force fatf, the international standardsetter for combating money laundering, the financing of terrorism and proliferation of weapons of mass. Criminals seek out the involvement of legal professionals in their mltf activities. The fatf is now revising the assessment methodology to be used for the next round of country evaluations which will begin in the second half of 20 and which will concentrate on how effectively the standards are being implemented. The 2012 fatf recommendations require that countries identify, assess and understand the money laundering and terrorist financing risks facing them and adapt their amlcft system accordingly.
The 20 guidance on antimoney laundering and terrorist financing measures and financial inclusion was a collaboration with apg and the world bank. The fatf has adopted a new guidance which is intended to assist in the conduct of risk assessment. The fatf calls upon all countries to effectively implement these measures in their national systems. The blacklist is a term used by the media, which is officially called as call for action nations by the fatf. Fatf annual report 2012 20 by financial action task force. Designated nonfinancial businesses and professionals. The fatf methodology for assessing compliance with the fatf recommendations and the effectiveness of amlcft systems sets out the evaluation process.
The recommendations were revised for the first time in 1996 and then again in. Fraudrelated money laundering was considered the highest risk and accounted for 70% of the money laundering investigations between 20 2017, whereas. Forty recommendations complete set of countermeasures against money laundering nine special recommendations on terrorist financing 33 members. Fatf 20 2017, antimoney laundering and terrorist financing measures and financial inclusion. It has 36 members covering the worlds major financial centers.
Annual report 201220 financial action task force fatf. Fatf 20 2018, methodology for assessing compliance with the fatf recommendations and the. The g20 leaders declaration from the september 20 st. D peoples republic of korea dprk the fatf calls on its members and other. This rticle focuses on the potential a impact on the legal profession of fatfs round of mutual fourth evaluations. The fatf report noted that hong kong has an indepth understanding of its main risks relating to fraud and common typologies used to launder proceeds. An overview congressional research service summary the national commission on terrorist attacks upon the united states, or the 911 commission, recommended that tracking terrorist financing must remain front and center in u. Text of the recommendation and interpretative note see also. Fatf 20a, best practices combating the abuse of nonprofit organisations recommendation 8, fatf, paris, france. An international analysis of fatf recommendations and.
Fincen has previously noted such conduct and deceptive practices used by north korea, most recently in 2009. 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 and terrorist financing. Based on the fatf recommendations, particularly those related to a customer due diligence recommendations 5, 6, 8 and 9, b businesses internal control systems recommendation 15, and c approach of oversightmonitoring recommendation 24, credit institutions are allowed to apply a riskbased approach rba. Assessments focus on two areas, effectiveness and technical compliance. Antimoney laundering and terrorist financing measures and. This was a list of 15 jurisdictions that, for one reason or another, fatf members believed were uncooperative with other jurisdictions in international efforts against money laundering and, later, terrorism financing. 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.
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