FATF 40 Recommendations
The FATF Recommendations are considered to be the international standards to combat money laundering and the financing of terrorists and proliferation (ML/TF/PF). They encompass a comprehensive set of measures that countries should implement within their AML/CFT framework including the preventive measures that financial institutions and DNFBPs should take, the establishment of competent authorities with appropriate functions, arrangements for international cooperation, amongst others. The FATF 40 recommendations include:
R1 | Assessing Risks and applying a Risk-Based Approach | R21 | Tipping-off and confidentiality |
R2 | National Cooperation and Coordination | R22 | DNFBPs: Customer due diligence |
R3 | Money laundering offence | R23 | DNFBPs: Other measures |
R4 | Confiscation and provisional measures | R24 | Transparency and beneficial ownership of legal persons |
R5 | Terrorist financing offence | R25 | Transparency and beneficial ownership of legal arrangements |
R6 | Targeted financial sanctions related to terrorism and terrorist financing | R26 | Regulation and supervision of financial institutions |
R7 | Targeted financial sanctions related to proliferation | R27 | Powers of supervisors |
R8 | Non-profit organisations | R28 | Regulation and supervision of DNFBPs |
R9 | Financial institution secrecy laws | R29 | Financial intelligence units |
R10 | Customer due diligence | R30 | Responsibilities of law enforcement and investigative authorities |
R11 | Record-keeping | R31 | Powers of law enforcement and investigative authorities |
R12 | Politically exposed persons | R32 | Cash Couriers |
R13 | Correspondent banking | R33 | Statistics |
R14 | Money or value transfer services | R34 | Guidance and feedback |
R15 | New technologies | R35 | Sanctions |
R16 | Wire transfers | R36 | International instruments |
R17 | Reliance on third parties | R37 | Mutual legal assistance |
R18 | Internal controls and foreign branches and subsidiaries | R38 | Mutual legal assistance: freezing and confiscation |
R19 | Higher-risk countries | R39 | Extradition |
R20 | Reporting of suspicious transaction | R40 | Other forms of international cooperation |