Financial action task force groupe daction financiere. 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. Methodology for assessing compliance with the fatf 40. Fatf was formed by the 1989 g7 summit in paris to combat the growing problem of money laundering. The revised forty recommendations now apply not only to money laundering but. Welcome to caribbean financial action task force cfatf. In june 2003 the fatf published a significantly revised set of forty recommendations. The new fatf 40 recommendations and the impact on hong kong and china. Countries should apply focused and proportionate measures, in line with the riskbased approach, continue reading. The guidance also is intended to help private sector entities. Impact of fatf reforms on financial institutions and dnfbps. Rosc would be problematic as long as the fatf pursued its ncct initiative.
Designated nonfinancial businesses and professionals. 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. Financial action task force groupe daction financiere methodology for assessing compliance with the fatf 40 recommendations and the fatf 9 special recommendations 27 february 2004 updated as of february 2009 fatf reference document. The international antimoney laundering and combating. Fatf recommends that dnfbps need to comply with five major recommendations i. Pdf fatf recommendations related to dnfbps on anti money. An overview congressional research service summary the national commission on terrorist attacks upon the united states, or the 9 11 commission, recommended that tracking terrorist financing must remain front and center in u. Since 1991 hong kong hk has been an independent member of the financial action task force fatf, an intergovernmental organisation established by the g7 summit in 1989, based in the oecd, paris, france, with responsibility for promoting national and international policies to. The fatf recommendations are the internationally endorsed global standards against money laundering and terrorist financing. Amongst these conditions was the finalization of the assessment methodology by the fatf. The revision of the fatf recommendations was adopted and publised in february 2012. Fatf ix special recommendations financial monitoring unit. An international analysis of fatf recommendations and compliance by dnfbps. Staff noted, however, that if the issues related to the adaptation of the fatf 40 recommendations and the ncct initiative to the rosc principles were resolved, a rosc based on the entire fatf 40 recommendations could be assessed by the fatf or the fatfstyle regional.
Combating the financing of the proliferation of weapons of mass destruction through the consistent implementation of targeted financial sanctions when these. 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 recommendations were revised in 1996 to reflect all serious crimes. Text of the recommendation and interpretative note see also. The 9 special recommendations have been subsumed into the revised 40 recommendations. 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.
Msbs to reflect the 2012 fatf recommendations and to merge it with the 2003 sr. This paper explores the mission and strategy of the financial action task force as it relates to suppressing the funding of terrorism, which often, although not necessarily, involves traditional money laundering schemes. Highlevel principles and objectives for fatf and fatfstyle regional bodies october 2012 pdf, 1. The financial action task force fatf has revised its international standards on combating money laundering and the financing of terrorism and proliferation the recommendations. The same focus on the beneficial ownership concept appears throughout fatfs revised 40 recommendations. Since 1991 hong kong hk has been an independent member of the financial action task force fatf, an intergovernmental organisation established by the g7 summit in 1989, based in the oecd, paris, france, with responsibility for promoting national and international policies. It has 36 members covering the worlds major financial centers.
Since then, the fatf has issued 40 recommendations to fight money laundering and 9 special recommendations to fight terrorist financing. The rba is now a mandatory element of a compliant amlcft regime, and the primacy of the rba is underscored by making identifying, assessing, and understanding risks and applying the rba the first of the revised fatf recommendations. Financial action task force on money laundering groupe d. The new fatf 40 recommendations and the impact on hong kong. Fatf recommendations financial action task force fatf.
Recommendations 12, 16,17,20,24 and 25 to combat the prevalence of money laundering and terrorism financing. Section v country examples of riskbased approach to virtual. Financial action task force groupe daction financiere fatf ix special recommendations october 2001 incorporating all subsequent amendments until february 2008 the fatf revised the 40 and the ix recommendations. Standard setting fatf 40 recommendations assessing compliance identify and respond to threats. This draft guidance is intended to update the 2009 rba guidance for money service businesses msbs to reflect the 2012 fatf recommendations and to merge it with the 2003 sr. The original fatf forty recommendations were drawn up in 1990 as an initiative to combat the. In 2001, its mandate was expanded to include terrorism financing the objectives of fatf are to set standards and promote effective. The report describes and analyses those measures and provides recommendations on how certain aspects of the system could be strengthened. The fatf recommendations by financial action task force issuu. Financial action task force on money laundering wikipedia. The methodology for assessing compliance with antimoney. Fatf is the intergovernmental organisation with responsibility for drawing up measures to combat money laundering, terrorism financing and the proliferation of weapons of mass destruction.
The financial action task force it was formed in 1989 to set out measures to be taken in the fight against money laundering. Countering terrorism or constraining civil society. The fatf recommendations are recognised as the global anti. 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. Countries may permit financial institutions to rely on intermediaries or. An international analysis of fatf recommendations and. Together, these recommendations form a comprehensive regime against money laundering and have been accepted worldwide as one of the most comprehensive bases for tackling money laundering. It was partially compliant or noncompliant for 4 of the 6 core recommendations. Recommendation number 8 pertains specifically to non profit organisations. The fatf recommendations by financial action task force.
According to the 911 commission report, the perpetrators spent approximately. In 1990, an obscure, oneyear task force published 40 vague and voluntary recommendations for building a better international antimoney. The key tool for this assessment is the methodology for assessing compliance with the fatf 40 recommendations and the fatf 9 special recommendations. The fatf calls upon all countries to effectively implement these measures in their national systems. Methdology for assessing compliance with the fatf 40 recommendations and the fatf 9 special recommendations.
Financial action task force on money laundering annual report 1990, pdf. Revisions to the financial action task force fatf standard. In 1990, the fatf issued forty recommendations to address this problem. This report provides a summary of the amlcft measures in place in the uae at the time of the mission or shortly thereafter. Recommendations, methodology and highlevel principles. 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 full text of the 40 recommendations, glossary and interpretative notes return to the fatf 40 recommendations page. The original fatf forty recommendations were developed in 1990 as an. The revision of the fatf recommendation was adopted. In addition, it seeks to remain consistent, as appropriate, with the rba guidance for the banking sector, which was the first of the series of rba guidance papers to be updated.
A further 9 special recommendations to prevent terrorist funding were issued. Fatf recommendations duhaimes antimoney laundering. Vi best practices on money or value transfer services. The task force was charged with studying money laundering trends, monitoring legislative, financial and law enforcement activities taken at the national and international level, reporting on compliance, and issuing recommendations and standards to combat money laundering. In 1972, a new constitution replaced the federation with a unitary state, the united republic of cameroon. Moreover, the 25th of june, 2016, when fatf issued a string of revisions related to the implementation of its recommendations, may even mark as highlighted by adam pickering. Firstly, member countries complete annual selfassessment style questionnaire and secondly. 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 financial action task force was established by the g7 summit in paris in july 1989 to examine measures to combat money laundering. The new fatf 40 recommendations and the impact on hong. 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. Revisions to the financial action task force fatf international. Cfatf secretariat 21st floor, nicholas tower, 6365 independence square, port of spain, trinidad and tobago tel. Jul 20, 2016 of the 40 recommendations made by fatf to the financial sector, recommendation 8 r8 had severe ramifications for the philanthropic sector, as it declared that csos are particularly vulnerable to money laundering and terrorist funding. 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. The recommendations were revised for the first time in 1996 and then again in. The antimoney launderingcombating terrorist financing amlcft methodology 2004, including the assessment criteria, is designed to guide the assessment of a countrys compliance with the international amlcft standards as contained in the fatf forty recommendations and the fatf nine special recommendations on terrorist financing referred to jointly as the fatf recommendations.
The sources said that out of 40 universal recommendations of financial action task force fatf, pakistans rating was partially and noncompliant on 30 recommendations and performance was also below par on 10 as against 11 immediate outcomes. Significant changes to fatf recommendation 8 and interpretive notes by terrance s. Fatf expanded specifically to include developing and promoting counterterrorist financing ctf practices. Methodology for assessing compliance with the fatf 40 9 recommendations 2004. Fatf recommendations are effectively implemented by all countries. Pakistan would complete implementation on 27 recommended measures of fatf until january next year, while 40 conditions of asia pacific group would be fulfilled until october next year.