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.
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.
What three of the following items did the 2003 revision to the FATF recommendations include?
The main changes introduced in 2003 included: (i) the adoption of stronger standard for money laundering predicate offenses; (ii) the extension of the customer due-diligence (CDD) process for financial institutions and enhanced customer identification measures for higher-risk customers and transactions; (iii) the …
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.
What is FATF and its purpose?
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.
How many recommendations were made by FATF on anti-money laundering?
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 suppress the financing of terrorism and terrorist acts.
What was the first FATF initiative?
How many recommendations were made by FATF on anti money laundering?
Do CDD records need to be kept?
You must keep sufficient supporting records (original documents or copies) in respect of a transaction which is the subject of CDD measures or ongoing monitoring to enable the transaction to be reconstructed.
What is GREY list of FATF?
Grey listing means FATF has placed a country under increased monitoring to check its progress on measures against money laundering and terrorism financing. The “grey list” is also known as the “increased monitoring list”.
Are FATF recommendations binding?
Despite not being binding, many countries have chosen to make a commitment to implement them in order to combat money laundering. The recommendations were first published in 1990, and have been subsequently revised in 1996 and 2003.
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 GREY list mean?
What is black and GREY list of FATF?
While the FATF Grey List includes countries that are subject to increased monitoring as a result of their AML/CFT deficiencies, the Black List includes those countries that FATF has deemed to have “significant strategic deficiencies” in their AML/CFT regimes.
What is the GREY list of FATF?
What is the grey list, and why is Pakistan on it? Grey listing means FATF has placed a country under increased monitoring to check its progress on measures against money laundering and terrorism financing. The “grey list” is also known as the “increased monitoring list”.
How often should CDD be undertaken?
Ongoing monitoring: CDD is not a one-off obligation. Companies should perform CDD periodically throughout a business relationship in order to ensure that customers’ transactions are consistent with their established risk profiles.
How long should CDD be retained?
When the business relationship or occasional transaction has ended, you must keep records of CDD documents and supporting evidence for five years. After five years, you must delete personal data unless: express consent is given to retain that data.
What is the difference between FATF GREY list and blacklist?