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What are the FATF 40 recommendations?

What are the FATF 40 recommendations?

The 40 Recommendations provide a complete set of counter-measures against money laundering (ML)covering the criminal justice system and law enforcement, the financial system and its regulation, and international co-operation. They have been recognised, endorsed, or adopted by many international bodies.

What recommendations were made by FATF?

The FATF Recommendations. As amended March 2022. 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.

What is the 40 recommendations in money laundering?

What are the FATF’s 40 Recommendations about? The FATF’s 40 Recommendations are non-binding guidances that target specific areas in which money launderers, terrorists and other criminals conduct illicit financial behavior.

What is FATF Special Recommendations?

The 40+9 Recommendations, together with their interpretative notes, provide the international standards for combating money laundering (ML) and terrorist financing (TF). The FATF revised the 40 and IX Recommendations. The revision of the FATF Recommendations was adopted and publised in February 2012.

How many recommendations were made by FATF on anti money laundering?

40 recommendations
The 40 recommendations mentioned above are intended to provide counter-measures against money laundering and encompass the criminal justice system, law enforcement, the financial system and its regulators, together with international co-operation.

What are the three objectives of FATF?

The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

How many recommendations were made by FATF on anti-money laundering?

What are the benefits of implementing the FATF recommendations?

They increase the transparency of the financial system (making it easier to detect criminal activity) and give countries the capacity to successfully take action against money launderers and terrorist financiers.

When did FATF recommendations start?

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. In 1996 the Recommendations were revised for the first time to reflect evolving money laundering typologies.

Are FATF recommendations mandatory?

FATF Recommendation 20: Reporting of Suspicious Transactions Suspicious transactions should carry a direct, mandatory reporting obligation, and should be reported regardless of the amount of money involved – even if they do not complete successfully.

How many recommendations are in the current FATF recommendations with regard to money laundering?

Forty Recommendations
These factors, combined with the experience gained through the FATF’s Non-Cooperative Countries and Territories process, and a number of national and international initiatives, led the FATF to review and revise the Forty Recommendations into a new comprehensive framework for combating money laundering and terrorist …

What are the FATF recommendations for Pakistan?

As per the report, Pakistan has achieved compliant/largely compliant rating in 4 more recommendations leading aggregate to 35/40 Recommendations rated as Compliant (C) or Largely Compliant (LC). Pakistan is now in the top tier of countries that have achieved a rating of C/LC for over 30 of the 40 FATF Recommendations.

What are the FATF standards for anti money laundering?

FATF Standards. The FATF Recommendations, the international anti-money laundering and combating the financing of terrorism and proliferation (AML/CFT) standards, and the FATF Methodology to assess the effectiveness of AML/CFT systems.

What is the FATF Recommendation on Combating Terrorist Financing?

THE FATF RECOMMENDATIONS INTERNATIONAL STANDARDS ON COMBATING MONEY LAUNDERING AND THE FINANCING OF TERRORISM & PROLIFERATION 30  2012-2021 Countries should authorise their competent authorities to use the most efficient means to cooperate.

How to manage the risk of money laundering and terrorist financing?

2. The type and extent of measures to be taken should be appropriate having regard to the risk of money laundering and terrorist financing and the size of the business. 3. Compliance management arrangements should include the appointment of a compliance officer at the management level. 4.

What is the purpose of the FATF Recommendations?

Topic: FATF Recommendations. The FATF Recommendations are the internationally endorsed global standards against money laundering and terrorist financing: they increase transparency and enable countries to successfully take action against illicit use of their financial system.