The FATF Recommendations
Forty rules written for the whole world in 1990 and recut ever since. Each one here in a single plain sentence — the way you would explain it to a new colleague.
Countries and firms identify and understand their money-laundering, terrorist-financing and proliferation-financing risks — and put their resources where the risk is highest.
▶ REG-LEAKS short — comingPolicy makers, the FIU, supervisors, police and prosecutors work together under national AML/CFT policies, compatible with data-protection rules.
▶ REG-LEAKS short — comingMoney laundering is a crime, covering the widest possible range of predicate offences.
▶ REG-LEAKS short — comingAuthorities can identify, freeze, seize and confiscate criminal proceeds and the instruments of crime — where possible, even without a criminal conviction.
▶ REG-LEAKS short — comingFinancing terrorist acts, terrorist organisations and individual terrorists is a crime — even without a link to a specific attack.
▶ REG-LEAKS short — comingThe assets of persons designated by the UN in relation to terrorism are frozen without delay, and no funds may be made available to them.
▶ REG-LEAKS short — comingThe same freezing obligations apply to persons designated in relation to weapons of mass destruction.
▶ REG-LEAKS short — comingProtect non-profit organisations from terrorist-financing abuse with focused, risk-based measures that do not disrupt legitimate charity.
▶ REG-LEAKS short — comingBanking and professional secrecy must not stand in the way of the AML/CFT measures.
▶ REG-LEAKS short — comingIdentify and verify customers and beneficial owners, understand the purpose of the relationship and monitor it. No anonymous accounts.
▶ REG-LEAKS short — comingKeep due-diligence records and transaction data for at least five years, and make them available to the authorities swiftly.
▶ REG-LEAKS short — comingApply enhanced measures to PEPs, their family members and close associates: senior approval, source of wealth and funds, enhanced monitoring.
▶ REG-LEAKS short — comingAssess the respondent institution and its controls, obtain senior approval — and never deal with shell banks.
▶ REG-LEAKS short — comingMoney and value transfer services, hawala included, are licensed or registered and supervised — and so are their agents.
▶ REG-LEAKS short — comingAssess the risks of new products and technologies before launch, and license and supervise virtual asset service providers.
▶ REG-LEAKS short — comingPayments carry accurate originator and beneficiary information along the whole chain — including virtual-asset transfers, the 'travel rule'.
▶ REG-LEAKS short — comingA firm may rely on the due diligence of another regulated entity, but it remains responsible for the result.
▶ REG-LEAKS short — comingGroup-wide AML/CFT programmes: compliance management, employee screening, training and independent audit.
▶ REG-LEAKS short — comingApply enhanced due diligence to relationships with high-risk jurisdictions, and countermeasures when the FATF calls for them.
▶ REG-LEAKS short — comingReport promptly to the FIU when you suspect that funds are the proceeds of crime or linked to terrorist financing.
▶ REG-LEAKS short — comingStaff who report in good faith are protected — and must never tell the customer that a report has been filed.
▶ REG-LEAKS short — comingCasinos, real-estate agents, dealers in precious metals and stones, lawyers, notaries, accountants and company service providers apply due diligence in defined situations.
▶ REG-LEAKS short — comingThe same professions report suspicion, maintain internal controls and apply measures for high-risk countries.
▶ REG-LEAKS short — comingAccurate, up-to-date beneficial ownership information on companies is available to the authorities — through a register or an equivalent mechanism.
▶ REG-LEAKS short — comingTrustees hold and disclose information on settlors, trustees, protectors, beneficiaries and anyone controlling a trust.
▶ REG-LEAKS short — comingFinancial institutions are licensed or registered, fit-and-proper tested and supervised on a risk basis.
▶ REG-LEAKS short — comingSupervisors can inspect, compel the production of information and impose sanctions.
▶ REG-LEAKS short — comingCasinos are licensed; the other professions are monitored by a supervisor or a self-regulatory body.
▶ REG-LEAKS short — comingAn operationally independent national centre receives and analyses reports, and disseminates the results.
▶ REG-LEAKS short — comingDesignated authorities investigate money laundering and terrorist financing, with parallel financial investigations.
▶ REG-LEAKS short — comingInvestigators can obtain records, search, seize, use special techniques and trace assets.
▶ REG-LEAKS short — comingDetect cross-border movements of cash and bearer instruments through declaration or disclosure systems.
▶ REG-LEAKS short — comingKeep comprehensive statistics on reports, investigations, prosecutions, convictions, confiscation and cooperation.
▶ REG-LEAKS short — comingAuthorities issue guidance and give feedback so that firms apply the rules and detect suspicion better.
▶ REG-LEAKS short — comingEffective, proportionate and dissuasive sanctions — criminal, civil or administrative — for firms and their senior management.
▶ REG-LEAKS short — comingRatify and implement the Vienna, Palermo and Merida conventions and the Terrorist Financing Convention.
▶ REG-LEAKS short — comingProvide the widest possible legal assistance in money-laundering and terrorist-financing cases, rapidly and constructively.
▶ REG-LEAKS short — comingAct quickly on foreign requests to identify, freeze, seize and confiscate.
▶ REG-LEAKS short — comingExtradite for money laundering and terrorist financing without undue delay. No safe havens.
▶ REG-LEAKS short — comingFIUs, supervisors and police exchange information with their foreign counterparts, spontaneously and on request.
▶ REG-LEAKS short — comingPlain-language summaries for learning purposes. Only the official FATF text is authoritative: FATF — The FATF Recommendations.
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