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FATF Recommendations


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FATF – February 22, 2013

Paris, 22 February 2013 – Public Statement

The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from money laundering and financing of terrorism (ML/FT) risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

FATF Non Cooperative

Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdictions.

  • Iran
  • Democratic People’s Republic of Korea (DPRK)

FATF High Risk

Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.

  • Ecuador
  • Ethiopia
  • Indonesia
  • Kenya
  • Morocco (New)
  • Myanmar
  • Nigeria
  • Pakistan
  • São Tomé and Príncipe
  • Syria
  • Tajikistan (New)
  • Tanzania
  • Turkey
  • Vietnam
  • Yemen

On Going Progress

<sort> Afghanistan Albania Algeria Angola Antigua and Barbuda Argentina Bangladesh Bolivia Brunei Darussalam Cambodia Cuba Kuwait Kyrgyzstan Mongolia Namibia Nepal Nicaragua Philippines Sri Lanka Sudan Thailand Zimbabwe </sort>

Jurisdictions no longer subject to the FATF’s on-going global AML/CFT compliance process

  • Ghana
  • Venezuela

FATF – October 19, 2012

Paris, 19 October 2012 – FATF Public Statement

The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from money laundering and financing of terrorism (ML/FT) risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

FATF Non Cooperative

Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdictions. <sort> Iran North Korea or DPRK </sort>

FATF High Risk

Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.

On Going Progress

October 19, 2012 – Pursuant to Ghana’s progress in largely addressing its action plan agreed upon with the FATF, Ghana is now identified in the FATF’s separate but related public document, “Improving Global AML/CFT Compliance: On-going Process.”

FATF – June 22, 2012

The FATF Recommendations of June 22, 2012 – Money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction are serious threats to security and the integrity of the financial system.

Rome, 22 June 2012 – The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from money laundering and financing of terrorism (ML/FT) risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

Public Statement June 22, 2012 & High-risk & non-cooperative jurisdictions

FATF Non Cooperative

June 22, 2012 – Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdictions.

<sort> Iran North Korea or DPRK </sort>

FATF High Risk

June 22, 2012 – Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below. <sort> Bolivia Cuba Ecuador Ethiopia Ghana Indonesia Kenya – Has not made sufficient progress since being identified in the Public Statement of June 2011. This jurisdictions should take significant actions by October 2012 Myanmar – Has not made sufficient progress since being identified in the Public Statement of June 2011. This jurisdictions should take significant actions by October 2012 Nigeria Pakistan São Tomé and Príncipe Sri Lanka Syria Tanzania Thailand Turkey – Has not made sufficient progress since being identified in the Public Statement of June 2011. This jurisdictions should take significant actions by October 2012 Vietnam Yemen </sort>

FATF On-Going Improvements

June 22, 2012 – Improving Global AML/CFT Compliance: on-going processs <sort>

AfghanistanAlbania AlgeriaAngolaAntigua and BarbudaArgentinaBangladeshBrunei DarussalamCambodiaKuwait KyrgyzstanMongoliaMoroccoNamibiaNepalNicaraguaPhilippinesSudanTajikistanTrinidad and TobagoVenezualaZimbabwe

</sort>

FATF No longer subject to monitoring

June 22, 2012 – Jurisdictions no longer subject to monitoring

  • Turkmenistan

FATF – February 16, 2012

The FATF Recommendations of February 16, 2012 – Money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction are serious threats to security and the integrity of the financial system.

The FATF Standards have been revised to strengthen global safeguards and further protect the integrity of the financial system by providing governments with stronger tools to take action against financial crime while. At the same time, these new standards will address new priority areas such as corruption and tax crimes.

The revision of the Recommendations aims at achieving a balance:

  • On the one hand, the requirements have been specifically strengthened in areas which are higher risk or where implementation could be enhanced. They have been expanded to deal with new threats such as the financing of proliferation of weapons of mass destruction, and to be clearer on transparency and tougher on corruption.
  • On the other, they are also better targeted – there is more flexibility for simplified measures to be applied in low risk areas. This risk-based approach will allow financial institutions and other designated sectors to apply their resources to higher risk areas.

The main changes are:

  • Combating the financing of the proliferation of weapons of mass destruction through the consistent implementation of targeted financial sanctions when these are called for by the UN Security Council.
  • Improved transparency to make it harder for criminals and terrorists to conceal their identities or hide their assets behind legal persons and arrangements.
  • Stronger requirements when dealing with politically exposed persons (PEPs).
  • Expanding the scope of money laundering predicate offences by including tax crimes.
  • An enhanced risk-based approach which enables countries and the private sector to apply their resources more efficiently by focusing on higherrisk areas.
  • More effective international cooperation including exchange of information between relevant authorities, conduct of joint investigations, and tracing, freezing and confiscation of illegal assets.
  • Better operational tools and a wider range of techniques and powers, both for the financial intelligence units, and for law enforcement to investigate and prosecute money laundering and terrorist financing.

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. The FATF calls upon all countries to effectively implement these measures in their national systems.

The FATF Recommendations – February 16, 2012 & FATF Press Release

Review of the FATF Standards & Perma Link to the FATF Page

US

February 16, 2012 – Treasury Under Secretary for Terrorism and Financial Intelligence David S. Cohen issued the following statement today:

“The United States welcomes the successful completion of the work of the Financial Action Task Force (FATF) to revise and strengthen its recommendations to combat the global threat of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. The FATF is the global standard-setting body for measures to combat these threats and today’s recommendations will be applied by more than 180 countries, through a global network of FATF-style regional bodies, as well as the International Monetary Fund (IMF) and the World Bank.

“The FATF recommendations have been revised to provide governments with stronger tools to take action against financial crime and protect the integrity of the international financial system. At the same time, these new standards address new priority areas such as proliferation finance, corruption, and tax crimes. The revisions reflect a risk-based approach, strengthening safeguards in areas that pose higher risks, and providing more flexibility to simplify measures in areas that pose a low risk for abuse. Key new measures include the following:

  • Proliferation Finance: FATF has adopted a new standard to assess jurisdictional compliance with the targeted financial sanctions requirements of UN Security Council resolutions that focus on the financing of proliferation activity. This standard will assist countries to address proliferation threats emanating from jurisdictions such as Iran and North Korea.
  • Corruption: To combat the significant problem posed by corruption across the globe, FATF has expanded the scope of its standard requiring financial institutions to apply enhanced due diligence (EDD) against all foreign politically exposed persons (PEPs) to now include a risk-based requirement for applying EDD against domestic PEPs. FATF has also strengthened and clarified its standards addressing the transparency of corporate vehicles and trusts, particularly with respect to beneficial ownership requirements. Such enhancements will assist financial institutions and anti-money laundering authorities to identify and investigate suspect accounts, including those used to launder proceeds of corruption.
  • Tax Crimes: FATF has also expanded the scope of predicate offenses to money laundering by including serious tax crimes. This expansion will promote the use of anti-money laundering authorities to assist in the identification, confiscation, and recovery of lost tax revenue.

“The FATF’s issuance of these revised global standards is an important development in the international community’s efforts to protect the international financial system, combat money laundering, terrorist financing, and the financing of proliferation. The United States looks forward to joining countries throughout the world in implementing these new standards.”

US Department of State Press Release

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