FATF 2012 AML Recommendations
On 16 February 2012, the Financial Action Task Force (FATF), the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT) , published the following public documents, identifying countries with strategic deficiencies regarding anti-money laundering and combating the financing of terrorism (AML/CFT).
As part of its ongoing review of compliance with the AML/CFT standards, the FATF has identified jurisdictions which have strategic AML/CFT deficiencies for which they have developed an action plan with the FATF.
Key recommendation areas to take particular note include:
• Assessing Risk and Applying a Risk Based Approach (Recommemdation 1)
• Targeted Financial Sanctions Related to Proliferation (Recommendation 7)
• Due Diligence (Recommendations 10 and 22)
• Politically Exposed Persons (Recommendation 12)
• Wire Transfers (Rcommendation 16)
• Transparency and Beneficial Ownership of Legal Persons (Recommendation 24)
• Responsibilities of Law Enforcement and Investigative Authorities (Recommendation 30)
Please be sure to review the Interpretive Notes as well as these will provide valuable insight in understanding these revised regulations.
While this may initially appear to be 127 pages of mind-numbing stuff, we honestly expect that this more strident set of objectives will be used in the regional country specific reviews to try to clarify anti-money laundering objectives and to get all countries on more of a level playing field.
Read and enjoy — ok, well maybe not “enjoy”… but you do need to read it.