A. AML/CFT POLICIES AND COORDINATION1. Assessing risks and applying a risk-based approach * |
CountriesAll references in the FATF Recommendations to country or countries apply equally to territories or jurisdictions. should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. identify, assess, and understand the money laundering and terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations. risks All references to risk refer to the risk of money laundering and/or terrorist financing. This term should be read in conjunction with the Interpretive Note to Recommendation 1. for the country, and should take action, including designating an authority or mechanism to coordinate actions to assess risks, and apply resources, aimed at ensuring the risks are mitigated effectively. Based on that assessment, countries should apply a risk-based approach (RBA) to ensure that measures to prevent or mitigate money laundering and terrorist financing are commensurate with the risks identified. This approach should be an essential foundation to efficient allocation of resources across the anti-money laundering and countering the financing of terrorism (AML/CFT) regime and the implementation of riskbased measures throughout the FATF Recommendations. Where countries identify higher risks, they should ensure that their AML/CFT regime adequately addresses such risks. Where countries identify lower risks, they may decide to allow simplified measures for some of the FATF Recommendations under certain conditions.
Countries should also identify, assess, and understand the proliferation financing risks for the country. In the context of Recommendation 1, «proliferation financing risk» refers strictly and only to the potential breach, non-implementation or evasion of the targeted financial sanctions obligations referred to in Recommendation 7. Countries should take commensurate action aimed at ensuring that these risks are mitigated effectively, including designating an authority or mechanism to coordinate actions to assess risks, and allocate resources efficiently for this purpose. Where countries identify higher risks, they should ensure that they adequately address such risks. Where countries identify lower risks, they should ensure that the measures applied are commensurate with the level of proliferation financing risk, while still ensuring full implementation of the targeted financial sanctions as required in Recommendation 7.
Countries should require financial institutions Financial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
and designated non-financial businesses and professions (DNFBPs) to identify,
assess and take effective action to mitigate their money laundering, terrorist
financing and proliferation financing risks.
A. AML/CFT POLICIES AND COORDINATION2. National cooperation and coordination* |
Countries should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. have national AML/CFT policies, informed by the risks All references to risk refer to the risk of money laundering and/or terrorist financing. This term should be read in conjunction with the Interpretive Note to Recommendation 1. identified, which should be regularly reviewed, and should designate an authority or have a coordination or other mechanism that is responsible for such policies.
Countries should ensure that policy-makers, the financial intelligence unit (FIU), law enforcement authorities, supervisors Supervisors refers to the designated competent authorities or non-public bodies with responsibilities aimed at ensuring compliance by financial institutions (�financial supervisors� 60Including Core Principles supervisors who carry out supervisory functions that are related to the implementation of the FATF Recommendations.) and/or DNFBPs with requirements to combat money laundering and terrorist financing. Non-public bodies (which could include certain types of SRBs) should have the power to supervise and sanction financial institutions or DNFBPs in relation to the AML/CFT requirements. These nonpublic bodies should also be empowered by law to exercise the functions they perform, and be supervised by a competent authority in relation to such functions. and other relevant competent authorities, at the policymaking and operational levels, have effective mechanisms in place which enable them to cooperate, and, where appropriate, coordinate and exchange information domestically with each other concerning the development and implementation of policies and activities to combat money laundering, terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations. and the financing of proliferation of weapons of mass destruction. This should include cooperation and coordination between relevant authorities to ensure the compatibility of AML/CFT requirements with Data Protection and Privacy rules and other similar provisions (e.g. data security / localisation).
B. MONEY LAUNDERING AND CONFISCATIONThe term confiscation, which includes forfeiture where applicable, means the permanent deprivation of the funds or other assetsThe term funds or other assets means any assets, including, but not limited to, financial assets, economic resources, property of every kind, whether tangible or intangible, movable or immovable, however acquired, and legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such funds or other assets, including, but not limited to, bank credits, travellers cheques, bank cheques, money orders, shares, securities, bonds, drafts, or letters of credit, and any interest, dividends or other income on or value accruing from or generated by such funds or other assets. by order of a competent authority or a court. Confiscation or forfeiture takes place through a judicial or administrative procedure that transfers the ownership of specified funds or other assets to be transferred to the State. In this case, the person(s) or entity(ies) that held an interest in the specified funds or other assets at the time of the confiscation or forfeiture loses all rights, in principle, to the confiscated or forfeited funds or other assets. Confiscation or forfeiture orders are usually linked to a criminal conviction or a court decision whereby the confiscated or forfeited property is determined to have been derived from or intended for use in a violation of the law.3. Money laundering offence* |
Countries should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. criminalise money laundering on the basis of the Vienna Convention and the Palermo Convention. Countries should apply the crime of money laundering to all serious offences, with a view to including the widest range of predicate offences.
B. MONEY LAUNDERING AND CONFISCATION4. ConfiscationThe term confiscation, which includes forfeiture where applicable, means the permanent deprivation of funds or other assets by order of a competent authority or a court. Confiscation or forfeiture takes place through a judicial or administrative procedure that transfers the ownership of specified funds or other assets to be transferred to the State. In this case, the person(s) or entity(ies) that held an interest in the specified funds or other assets at the time of the confiscation or forfeiture loses all rights, in principle, to the confiscated or forfeited funds or other assets. Confiscation or forfeiture orders are usually linked to a criminal conviction or a court decision whereby the confiscated or forfeited property is determined to have been derived from or intended for use in a violation of the law. and provisional measures* |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
adopt measures similar to those set forth in the Vienna Convention, the Palermo
Convention, and the Terrorist Financing Convention, including legislative
measures, to enable their competent authorities to freeze In the
context of confiscation and provisional measures (e.g., Recommendations 4,
32 and 38), the term freeze means to prohibit the transfer, conversion,
disposition or movement of any property, equipment or other
instrumentalities on the basis of, and for the duration of the validity of,
an action initiated by a competent authority or a court under a freezing
mechanism, or until a forfeiture or confiscation determination is made by a
competent authority.
For the purposes of Recommendations 6 and 7 on the implementation of
targeted financial sanctions, the term freeze means to prohibit the
transfer, conversion, disposition or movement of any funds or other assets
that are owned or controlled by designated persons or entities on the basis
of, and for the duration of the validity of, an action initiated by the
United Nations Security Council or in accordance with applicable Security
Council resolutions by a competent authority or a court.
In all cases, the frozen property, equipment, instrumentalities, funds or
other assets remain the property of the natural or legal person(s) that held
an interest in them at the time of the freezing and may continue to be
administered by third parties, or through other arrangements established by
such natural or legal person(s) prior to the initiation of an action under a
freezing mechanism, or in accordance with other national provisions. As part
of the implementation of a freeze, countries may decide to take control of
the property, equipment, instrumentalities, or funds or other assets as a
means to protect against flight.
or seize The term seize means to prohibit the transfer,
conversion, disposition or movement of property on the basis of an action
initiated by a competent authority or a court under a freezing mechanism.
However, unlike a freezing action, a seizure is effected by a mechanism that
allows the competent authority or court to take control of specified
property. The seized property remains the property of the natural or legal
person(s) that holds an interest in the specified property at the time of
the seizure, although the competent authority or court will often take over
possession, administration or management of the seized property. and
confiscate the following, without prejudicing the rights of bona fide third
parties: (a) property Property means assets of every kind, whether
corporeal or incorporeal, moveable or immoveable, tangible or intangible,
and legal documents or instruments evidencing title to, or interest in such
assets. laundered, (b) proceeds Proceeds refers to any property derived from or
obtained, directly or indirectly, through the commission of an
offence. from, or instrumentalities used in or intended for use in
money laundering or predicate offences, (c) property that is the proceeds of, or
used in, or intended or allocated for use in, the financing of terrorism, terrorist acts
A terrorist act includes:
1) an act which constitutes an offence within the scope of, and as defined
in one of the following treaties: (i) Convention for the Suppression of
Unlawful Seizure of Aircraft (1970); (ii) Convention for the Suppression of
Unlawful Acts against the Safety of Civil Aviation (1971); (iii) Convention
on the Prevention and Punishment of Crimes against Internationally Protected
Persons, including Diplomatic Agents (1973); (iv) International Convention
against the Taking of Hostages (1979); (v) Convention on the Physical
Protection of Nuclear Material (1980); (vi) Protocol for the Suppression of
Unlawful Acts of Violence at Airports Serving International Civil Aviation,
supplementary to the Convention for the Suppression of Unlawful Acts against
the Safety of Civil Aviation (1988); (vii) Convention for the Suppression of
Unlawful Acts against the Safety of Maritime Navigation ( 2005); (viii)
Protocol for the Suppression of Unlawful Acts against the Safety of Fixed
Platforms located on the Continental Shelf (2005); (ix) International
Convention for the Suppression of Terrorist Bombings (1997); and (x)
International Convention for the Suppression of the Financing of Terrorism
(1999).
2) any other act intended to cause death or serious bodily injury to a
civilian, or to any other person not taking an active part in the
hostilities in a situation of armed conflict, when the purpose of such act,
by its nature or context, is to intimidate a population, or to compel a
Government or an international organisation to do or to abstain from doing
any act.
or terrorist organisations The term terrorist organisation refers to any group
of terrorists that: (i) commits, or attempts to commit, terrorist acts by
any means, directly or indirectly, unlawfully and wilfully; (ii)
participates as an accomplice in terrorist acts; (iii) organises or directs
others to commit terrorist acts; or (iv) contributes to the commission of
terrorist acts by a group of persons acting with a common purpose where the
contribution is made intentionally and with the aim of furthering the
terrorist act or with the knowledge of the intention of the group to commit
a terrorist act., or (d) property of corresponding value.
Such measures should include the authority to: (a) identify, trace and evaluate property that is subject to confiscation; (b) carry out provisional measures, such as freezing and seizing, to prevent any dealing, transfer or disposal of such property; (c) take steps that will prevent or void actions that prejudice the country’s ability to freeze or seize The term seize means to prohibit the transfer, conversion, disposition or movement of property on the basis of an action initiated by a competent authority or a court under a freezing mechanism. However, unlike a freezing action, a seizure is effected by a mechanism that allows the competent authority or court to take control of specified property. The seized property remains the property of the natural or legal person(s) that holds an interest in the specified property at the time of the seizure, although the competent authority or court will often take over possession, administration or management of the seized property. or recover property that is subject to confiscation; and (d) take any appropriate investigative measures.
Countries should consider adopting measures that allow such proceeds or instrumentalities to be confiscated without requiring a criminal conviction (non-conviction based confiscation Non-conviction based confiscation means confiscation through judicial procedures related to a criminal offence for which a criminal conviction is not required.), or which require an offender to demonstrate the lawful origin of the property alleged to be liable to confiscation, to the extent that such a requirement is consistent with the principles of their domestic law.
C. TERRORIST FINANCING AND FINANCING OF PROLIFERATION5. Terrorist financing offence* |
Countries should criminalise terrorist financing on the basis of the Terrorist Financing Convention, and should criminalise not only the financing of terrorist acts but also the financing of terrorist organisations and individual terrorists even in the absence of a link to a specific terrorist act or acts. Countries should ensure that such offences are designated as money laundering predicate offences.
C. TERRORIST FINANCING AND FINANCING OF PROLIFERATION6. Targeted financial sanctions related to terrorism and terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations. * |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
implement targeted financial sanctions regimes to comply with United Nations
Security Council resolutions relating to the prevention and suppression of
terrorism and terrorist financing. The resolutions require countries to freeze In the context of confiscation and provisional
measures (e.g., Recommendations 4, 32 and 38), the term freeze means to
prohibit the transfer, conversion, disposition or movement of any property,
equipment or other instrumentalities on the basis of, and for the duration
of the validity of, an action initiated by a competent authority or a court
under a freezing mechanism, or until a forfeiture or confiscation
determination is made by a competent authority.
For the purposes of Recommendations 6 and 7 on the implementation of
targeted financial sanctions, the term freeze means to prohibit the
transfer, conversion, disposition or movement of any funds or other assets
that are owned or controlled by designated persons or entities on the basis
of, and for the duration of the validity of, an action initiated by the
United Nations Security Council or in accordance with applicable Security
Council resolutions by a competent authority or a court.
In all cases, the frozen property, equipment, instrumentalities, funds or
other assets remain the property of the natural or legal person(s) that held
an interest in them at the time of the freezing and may continue to be
administered by third parties, or through other arrangements established by
such natural or legal person(s) prior to the initiation of an action under a
freezing mechanism, or in accordance with other national provisions. As part
of the implementation of a freeze, countries may decide to take control of
the property, equipment, instrumentalities, or funds or other assets as a
means to protect against flight. without delay The phrase without delay means, ideally, within a
matter of hours of a designation by the United Nations Security Council or
its relevant Sanctions Committee (e.g. the 1267 Committee, the 1988
Committee, the 1718 Sanctions Committee or the 1737 Sanctions Committee).
For the purposes of S/RES/1373(2001), the phrase without delay means upon
having reasonable grounds, or a reasonable basis, to suspect or believe that
a person or entity is a terrorist, one who finances terrorism or a terrorist
organisation. In both cases, the phrase without delay should be interpreted
in the context of the need to prevent the flight or dissipation of funds or
other assets which are linked to terrorists, terrorist organisations, those
who finance terrorism, and to the financing of proliferation of weapons of
mass destruction, and the need for global, concerted action to interdict and
disrupt their flow swiftly. the funds or other assets of, and to
ensure that no funds or other assets are made available, directly or indirectly,
to or for the benefit of, any person or entity either (i) designated by, or
under the authority of, the United Nations Security Council under Chapter VII of
the Charter of the United Nations, including in accordance with resolution 1267
(1999) and its successor resolutions; or (ii) designated by that countryAll
references in the FATF Recommendations to country or countries apply equally
to territories or jurisdictions. pursuant to resolution 1373 (2001).
C. TERRORIST FINANCING AND FINANCING OF PROLIFERATION7. Targeted financial sanctions related to proliferation * |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
implement targeted financial sanctions
The term targeted financial sanctions means both
asset freezing and prohibitions to prevent funds or other assets from being
made available, directly or indirectly, for the benefit of designated
persons and entities. to comply with United Nations Security Council
resolutions relating to the prevention, suppression and disruption of
proliferation of weapons of mass destruction and its financing. These
resolutions require countries to freeze In the
context of confiscation and provisional measures (e.g., Recommendations 4,
32 and 38), the term freeze means to prohibit the transfer, conversion,
disposition or movement of any property, equipment or other
instrumentalities on the basis of, and for the duration of the validity of,
an action initiated by a competent authority or a court under a freezing
mechanism, or until a forfeiture or confiscation determination is made by a
competent authority.
For the purposes of Recommendations 6 and 7 on the implementation of
targeted financial sanctions, the term freeze means to prohibit the
transfer, conversion, disposition or movement of any funds or other assets
that are owned or controlled by designated persons or entities on the basis
of, and for the duration of the validity of, an action initiated by the
United Nations Security Council or in accordance with applicable Security
Council resolutions by a competent authority or a court.
In all cases, the frozen property, equipment, instrumentalities, funds or
other assets remain the property of the natural or legal person(s) that held
an interest in them at the time of the freezing and may continue to be
administered by third parties, or through other arrangements established by
such natural or legal person(s) prior to the initiation of an action under a
freezing mechanism, or in accordance with other national provisions. As part
of the implementation of a freeze, countries may decide to take control of
the property, equipment, instrumentalities, or funds or other assets as a
means to protect against flight. without delay The phrase without delay means, ideally, within a
matter of hours of a designation by the United Nations Security Council or
its relevant Sanctions Committee (e.g. the 1267 Committee, the 1988
Committee, the 1718 Sanctions Committee or the 1737 Sanctions Committee).
For the purposes of S/RES/1373(2001), the phrase without delay means upon
having reasonable grounds, or a reasonable basis, to suspect or believe that
a person or entity is a terrorist, one who finances terrorism or a terrorist
organisation. In both cases, the phrase without delay should be interpreted
in the context of the need to prevent the flight or dissipation of funds or
other assets which are linked to terrorists, terrorist organisations, those
who finance terrorism, and to the financing of proliferation of weapons of
mass destruction, and the need for global, concerted action to interdict and
disrupt their flow swiftly. the funds The term
funds refers to assets of every kind, whether corporeal or incorporeal,
tangible or intangible, movable or immovable, however acquired, and legal
documents or instruments in any form, including electronic or digital,
evidencing title to, or interest in, such assets. or other assets of,
and to ensure that no funds and other assets are made available, directly or
indirectly, to or for the benefit of, any person or entity designated by, or
under the authority of, the United Nations Security Council under Chapter VII of
the Charter of the United Nations.
C. TERRORIST FINANCING AND FINANCING OF PROLIFERATION8. Non-profit organisations refers to a legal person or arrangement or organisation that primarily engages in raising or disbursing funds for purposes such as charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying out of other types of "good works". * |
Countries should review the adequacy of laws and regulations that relate to non-profit organisations which the country has identified as being vulnerable to terrorist financing abuse. Countries should apply focused and proportionate measures, in line with the risk-based approach, to such non-profit organisations to protect them from terrorist financing abuse, including:
D. PREVENTIVE MEASURES9. Financial institution secrecy laws* |
Countries should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. ensure that financial institution secrecy laws do not inhibit implementation of the FATF Recommendations.
D. PREVENTIVE MEASURESCUSTOMER DUE DILIGENCE AND RECORD-KEEPING10. Customer due diligence* |
Financial institutions Financial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
be prohibited from keeping anonymous accountsReferences to “accounts” should be read as including
other similar business relationships between financial institutions and
their customers. or accountsReferences to “accounts” should be read as including
other similar business relationships between financial institutions and
their customers. in obviously fictitious names.
Financial institutions should be required to undertake customer due diligence (CDD) measures when:
The principle that financial institutions should conduct CDD should be set out in law. Each countryAll references in the FATF Recommendations to country or countries apply equally to territories or jurisdictions. may determine how it imposes specific CDD obligations, either through law or enforceable means Please refer to the Note on the Legal Basis of requirements on Financial Institutions and DNFBPs..
The CDD measures to be taken are as follows:
Financial institutions should be required to apply each of the CDD measures under (a) to (d) above, but should determine the extent of such measures using a risk-based approach (RBA) in accordance with the Interpretive Notes to this Recommendation and to Recommendation 1.
Financial institutions should be required to verify the identity of the customer and beneficial ownerBeneficial owner refers to the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement. before or during the course of establishing a business relationship or conducting transactions for occasional customers. Countries may permit financial institutions to complete the verification as soon as reasonably practicable following the establishment of the relationship, where the money laundering and terrorist financing risks are effectively managed and where this is essential not to interrupt the normal conduct of business.
Where the financial institution is unable to comply with the applicable requirements under paragraphs (a) to (d) above (subject to appropriate modification of the extent of the measures on a risk-based approach), it should be required not to open the account, commence business relations or perform the transaction; or should be required to terminate the business relationship; and should consider making a suspicious transactions report in relation to the customer.
These requirements should apply to all new customers, although financial institutions should also apply this Recommendation to existing customers on the basis of materiality and risk All references to risk refer to the risk of money laundering and/or terrorist financing. This term should be read in conjunction with the Interpretive Note to Recommendation 1., and should conduct due diligence on such existing relationships at appropriate times.
D. PREVENTIVE MEASURESCUSTOMER DUE DILIGENCE AND RECORD-KEEPING11. Record-keeping |
Financial institutionsFinancial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
be required to maintain, for at least five years, all necessary records on
transactions, both domestic and international, to enable them to comply swiftly
with information requests from the competent authorities. Such records must be
sufficient to permit reconstruction of individual transactions (including the
amounts and types of currency Currency refers to banknotes and coins that
are in circulation as a medium of exchange. involved, if any) so as
to provide, if necessary, evidence for prosecution of criminal activity Criminal activity refers to: (a) all criminal
acts that would constitute a predicate offence for money laundering in the
country; or (b) at a minimum to those offences that would constitute a
predicate offence as required by Recommendation 3..
Financial institutions should be required to keep all records obtained through CDD measures (e.g. copies or records of official identification documents like passports, identity cards, driving licences or similar documents), account files and business correspondence, including the results of any analysis undertaken (e.g. inquiries to establish the background and purpose of complex, unusual large transactions), for at least five years after the business relationship is ended, or after the date of the occasional transaction.
Financial institutions should be required by law to maintain records on transactions and information obtained through the CDD measures.
The CDD information and the transaction records should be available to domestic competent authorities upon appropriate authority.
D. PREVENTIVE MEASURESADDITIONAL MEASURES FOR SPECIFIC CUSTOMERS AND ACTIVITIES
12.
Politically Exposed Persons
Foreign PEPs are individuals who are or
have been entrusted with prominent public functions by a foreign
country, for example Heads of State or of government, senior
politicians, senior government, judicial or military officials,
senior executives of state owned corporations, important political
party officials.
|
Financial institutions Financial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
be required, in relation to foreign politically exposed persons (PEPs) (whether
as customer or beneficial ownerBeneficial owner refers to the natural
person(s) who ultimately owns or controls a customer and/or the natural
person on whose behalf a transaction is being conducted. It also includes
those persons who exercise ultimate effective control over a legal person or
arrangement.), in addition to performing normal customer due
diligence measures, to:
Financial institutions should be required to take reasonable measures to determine whether a customer or beneficial owner is a domestic PEP or a person who is or has been entrusted with a prominent function by an international organisation. In cases of a higher risk All references to risk refer to the risk of money laundering and/or terrorist financing. This term should be read in conjunction with the Interpretive Note to Recommendation 1. business relationship with such persons, financial institutions should be required to apply the measures referred to in paragraphs (b), (c) and (d).
The requirements for all types of PEP should also apply to family members or close associates of such PEPs.
D. PREVENTIVE MEASURESADDITIONAL MEASURES FOR SPECIFIC CUSTOMERS AND ACTIVITIES13. Correspondent banking* |
Financial institutionsFinancial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
be required, in relation to cross-border Correspondent bankingCorrespondent banking is the provision of
banking services by one bank (the “correspondent bank”) to another bank (the
“respondent bank”). Large international banks typically act as
correspondents for thousands of other banks around the world. Respondent
banks may be provided with a wide range of services, including cash
management (e.g. interest-bearing accounts in a variety of currencies),
international wire transfers cheque clearing, payable-through accounts and
foreign exchange services. and other similar relationships, in
addition to performing normal customer due diligence measures, to:
Financial institutions should be prohibited from entering into, or continuing, a
correspondent banking relationship with shell banks Shell bank means a bank that has no physical
presence in the country in which it is incorporated and licensed, and which
is unaffiliated with a regulated financial group that is subject to
effective consolidated supervision.
Physical presence means
meaningful mind and management located within a country. The existence
simply of a local agent or low level staff does not constitute physical
presence.. Financial institutions should be required to satisfy
themselves that respondent institutions do not permit their accounts to be used
by shell banks.
D. PREVENTIVE MEASURESADDITIONAL MEASURES FOR SPECIFIC CUSTOMERS AND ACTIVITIES14. Money or value transfer services* |
Countries should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. take measures to ensure that natural or legal persons Legal persons refers to any entities other than natural persons that can establish a permanent customer relationship with a financial institution or otherwise own property. This can include companies, bodies corporate, foundations, anstalt, partnerships, or associations and other relevantly similar entities. that provide Money or value transfer services money or value transfer services (MVTS) refers to financial services that involve the acceptance of cash, cheques, other monetary instruments or other stores of value and the payment of a corresponding sum in cash or other form to a beneficiary by means of a communication, message, transfer, or through a clearing network to which the MVTS provider belongs. Transactions performed by such services can involve one or more intermediaries and a final payment to a third party, and may include any new payment methods. Sometimes these services have ties to particular geographic regions and are described using a variety of specific terms, including hawala, hundi, and fei-chen. (MVTS) are licensed or registered, and subject to effective systems for monitoring and ensuring compliance with the relevant measures called for in the FATF Recommendations. Countries should take action to identify natural or legal persons that carry out MVTS without a license or registration, and to apply appropriate sanctions.
Any natural or legal person working as an agentsFor the purposes of Recommendations 14 and 16, agent means any natural or legal person providing MVTS on behalf of an MVTS provider, whether by contract with or under the direction of the MVTS provider. should also be licensed or registered by a competent authority, or the MVTS provider should maintain a current list of its agents accessible by competent authorities in the countries in which the MVTS provider and its agents operate. Countries should take measures to ensure that MVTS providers that use agents include them in their AML/CFT programmes and monitor them for compliance with these programmes.
D. PREVENTIVE MEASURESADDITIONAL MEASURES FOR SPECIFIC CUSTOMERS AND ACTIVITIES15. New technologies |
Countries and financial
institutionsFinancial institutions
means any natural or legal person who conducts as abusiness one or more of
the following activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
identify and assess the money laundering or terrorist financing Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations. risks All
references to risk refer to the risk of money laundering and/or terrorist
financing. This term should be read in conjunction with the Interpretive
Note to Recommendation 1. that may arise in relation to (a) the
development of new products and new business practices, including new delivery
mechanisms, and (b) the use of new or developing technologies for both new and
pre-existing products. In the case of financial institutions, such a risk
assessment should take place prior to the launch of the new products, business
practices or the use of new or developing technologies. They should take
appropriate measures to manage and mitigate those risks.
To manage and mitigate the risks emerging from virtual assets, countries should ensure that virtual asset service providers are regulated for AML/CFT purposes, and licensed or registered and subject to effective systems for monitoring and ensuring compliance with the relevant measures called for in the FATF Recommendations.
D. PREVENTIVE MEASURESADDITIONAL MEASURES FOR SPECIFIC CUSTOMERS AND ACTIVITIES16. Wire transfers* |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
ensure that financial institutions
Financial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
include required and accurateis used to describe information that has been
verified for accuracy. originator refers to the account holder who allows the wire
transfer from that account, or where there is no account, the natural or
legal person that places the order with the ordering financial institution
to perform the
wire transfer. information, and required beneficiaryrefers to the natural or legal person or legal
arrangement who is identified by the originator as the receiver of the
requested wire transfer. information, on wire transfers and related
messages, and that the information remains with the wire transfer or related
message throughout the payment chain.
Countries should ensure that financial institutions monitor wire transfers for the purpose of detecting those which lack required originator and/or beneficiary information, and take appropriate measures.
Countries should ensure that, in the context of processing wire transfers, financial institutions take freezing action and should prohibit conducting transactions with designated persons and entities, as per the obligations set out in the relevant United Nations Security Council resolutions, such as resolution 1267 (1999) and its successor resolutions, and resolution 1373(2001), relating to the prevention and suppression of terrorism and terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations..
D. PREVENTIVE MEASURESRELIANCE, CONTROLS AND FINANCIAL GROUPS Financial group means a group that consists of a parent company or of any other type of legal person exercising control and coordinating functions over the rest of the group for the application of group supervision under the Core Principles, together with branches and/or subsidiaries that are subject to AML/CFT policies and procedures at the group level.17. Reliance on third parties* |
Countries may permit financial
institutions Financial institutions
means any natural or legal person who conducts as abusiness one or more of
the following activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
to rely on third parties to perform elements (a)-(c) of the CDD measures set out
in Recommendation 10 or to introduce business, provided that the criteria set
out below are met. Where such reliance is permitted, the ultimate responsibility
for CDD measures remains with the financial institution relying on the third
party.
The criteria that should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. be met are as follows:
When a financial institution relies on a third party that is part of the same financial group Financial group means a group that consists of a parent company or of any other type of legal person exercising control and coordinating functions over the rest of the group for the application of group supervision under the Core Principles, together with branches and/or subsidiaries that are subject to AML/CFT policies and procedures at the group level., and (i) that group applies CDD and record-keeping requirements, in line with Recommendations 10, 11 and 12, and programmes against money laundering and terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations., in accordance with Recommendation 18; and (ii) where the effective implementation of those CDD and record-keeping requirements and AML/CFT programmes is supervised at a group level by a competent authority, then relevant competent authorities may consider that the financial institution applies measures under (b) and (c) above through its group programme, and may decide that (d) is not a necessary precondition to reliance when higher country risk is adequately mitigated by the group AML/CFT policies.
D. PREVENTIVE MEASURESRELIANCE, CONTROLS AND FINANCIAL GROUPS Financial group means a group that consists of a parent company or of any other type of legal person exercising control and coordinating functions over the rest of the group for the application of group supervision under the Core Principles, together with branches and/or subsidiaries that are subject to AML/CFT policies and procedures at the group level.18. Internal controls and foreign branches and subsidiaries* |
Financial institutionsFinancial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
be required to implement programmes against money laundering and terrorist financing Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations.. Financial
groups should be required to implement groupwide programmes against money
laundering and terrorist financing, including policies and procedures for
sharing information within the group for AML/CFT purposes.
Financial institutions should be required to ensure that their foreign branches and majorityowned subsidiaries apply AML/CFT measures consistent with the home countryAll references in the FATF Recommendations to country or countries apply equally to territories or jurisdictions. requirements implementing the FATF Recommendations through the financial groups’ programmes against money laundering and terrorist financing.
D. PREVENTIVE MEASURESRELIANCE, CONTROLS AND FINANCIAL GROUPS Financial group means a group that consists of a parent company or of any other type of legal person exercising control and coordinating functions over the rest of the group for the application of group supervision under the Core Principles, together with branches and/or subsidiaries that are subject to AML/CFT policies and procedures at the group level.19. Higher-risk countries* |
Financial institutions should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
be required to apply enhanced due diligence measures to business relationships
and transactions with natural and legal
persons Legal persons refers to any
entities other than natural persons that can establish a permanent customer
relationship with a financial institution or otherwise own property. This
can include companies, bodies corporate, foundations, anstalt, partnerships,
or associations and other relevantly similar entities., and financial institutions Financial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
, from countries for which this is called for by the FATF. The type of enhanced
due diligence measures applied should be effective and proportionate to the
risks.
Countries should be able to apply appropriate countermeasures when called upon to do so by the FATF. Countries should also be able to apply countermeasures independently of any call by the FATF to do so. Such countermeasures should be effective and proportionate to the risks.
D. PREVENTIVE MEASURESREPORTING OF SUSPICIOUS TRANSACTIONS20. Reporting of suspicious transactions* |
If a financial institution suspects or has reasonable grounds to suspect that funds The term funds refers to assets of every kind, whether corporeal or incorporeal, tangible or intangible, movable or immovable, however acquired, and legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such assets. are the proceeds Proceeds refers to any property derived from or obtained, directly or indirectly, through the commission of an offence. of a criminal activity Criminal activity refers to: (a) all criminal acts that would constitute a predicate offence for money laundering in the country; or (b) at a minimum to those offences that would constitute a predicate offence as required by Recommendation 3., or are related to terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations., it should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. be required, by law, to report promptly its suspicions to the financial intelligence unit (FIU).
D. PREVENTIVE MEASURESREPORTING OF SUSPICIOUS TRANSACTIONS21. Tipping-off and confidentiality |
Financial institutionsFinancial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
, their directors, officers and employees should For the
purposes of assessing compliance with the FATF Recommendations, the word
should has the same meaning as must. be:
D. PREVENTIVE MEASURESDESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS22. DNFBPs: customer due diligence* |
The customer due diligence and record-keeping requirements set out in Recommendations 10, 11, 12, 15, and 17, apply to designated non-financial businesses and professions (DNFBPs) in the following situations:
D. PREVENTIVE MEASURESDESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS23. DNFBPs: Other measures* |
The requirements set out in Recommendations 18 to 21 apply to all designated non-financial businesses and professions, subject to the following qualifications:
E. TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS24. Transparency and beneficial ownership of legal persons Legal persons refers to any entities other than natural persons that can establish a permanent customer relationship with a financial institution or otherwise own property. This can include companies, bodies corporate, foundations, anstalt, partnerships, or associations and other relevantly similar entities.* |
Countries should assess the risks of misuse of legal persons for money laundering or terrorist financing, and take measures to prevent their misuse. Countries should ensure that there is adequate, accurate and up-to-date information on the beneficial ownership and control of legal persons that can be obtained or accessed rapidly and efficiently by competent authorities, through either a register of beneficial ownership or an alternative mechanism. Countries should not permit legal persons to issue new bearer shares or bearer share warrants, and take measures to prevent the misuse of existing bearer shares and bearer share warrants. Countries should take effective measures to ensure that nominee shareholders and directors are not misused for money laundering or terrorist financing. Countries should consider facilitating access to beneficial ownership and control information by financial institutions and DNFBPs undertaking the requirements set out in Recommendations 10 and 22.
E. TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS Legal persons refers to any entities other than natural persons that can establish a permanent customer relationship with a financial institution or otherwise own property. This can include companies, bodies corporate, foundations, anstalt, partnerships, or associations and other relevantly similar entities. AND ARRANGEMENTS25. Transparency and beneficial ownership of legal arrangements Legal arrangements refers to express trusts or other similar legal arrangements. Examples of other similar arrangements (for AML/CFT purposes) include fiducie, treuhand and fideicomiso.* |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
take measures to prevent the misuse of legal arrangements for money laundering
or terrorist financing Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations.. In particular,
countries should ensure that there is adequate, accurateis used
to describe information that has been verified for accuracy. and
timely information on express trusts
Express trust refers to a trust clearly
created by the settlor, usually in the form of a document e.g. a written
deed of trust. They are to be contrasted with trusts which come into being
through the operation of the law and which do not result from the clear
intent or decision of a settlor to create a trust or similar legal
arrangements (e.g. constructive trust)., including information on the
settlor, trustee The terms trust and trustee should be understood as
described in and consistent with Article 2 of the Hague Convention on the
law applicable to trusts and their recognition
Trustees may be professional (e.g. depending on the jurisdiction, a lawyer
or trust company) if they are paid to act as a trustee in the course of
their business, or non-professional (e.g. a person acting without reward on
behalf of family).
and beneficiaries, that can be obtained or accessed in a timely fashion by
competent authorities. Countries should consider measures to facilitate access
to beneficial ownership and control information by financial institutions Financial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
and DNFBPs undertaking the requirements set out in Recommendations 10 and 22.
F. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESREGULATION AND SUPERVISION
26.
Regulation and supervision of financial institutionsFinancial institutions means any
natural or legal person who conducts as abusiness one or more of the
following activities or operations for or on behalf of a
customer:
|
Countries should ensure that financial institutions are subject to adequate regulation and supervision and are effectively implementing the FATF Recommendations. Competent authorities or financial supervisors should take the necessary legal or regulatory measures to prevent criminals or their associates from holding, or being the beneficial ownerBeneficial owner refers to the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement. of, a significant or controlling interest, or holding a management function in, a financial institution. Countries should not approve the establishment, or continued operation, of shell banks.
For financial institutions subject to the Core PrinciplesCore Principles refers to the Core Principles for Effective Banking Supervision issued by the Basel Committee on Banking Supervision, the Objectives and Principles for Securities Regulation issued by the International Organization of Securities Commissions, and the Insurance Supervisory Principles issued by the International Association of Insurance Supervisors., the regulatory and supervisory measures that apply for prudential purposes, and which are also relevant to money laundering and terrorist financing, should apply in a similar manner for AML/CFT purposes. This should include applying consolidated group supervision for AML/CFT purposes.
Other financial institutions should be licensed or registered and adequately regulated, and subject to supervision or monitoring for AML/CFT purposes, having regard to the risk of money laundering or terrorist financing in that sector. At a minimum, where financial institutions provide a service of money or value transfer, or of money or currency Currency refers to banknotes and coins that are in circulation as a medium of exchange. changing, they should be licensed or registered, and subject to effective systems for monitoring and ensuring compliance with national AML/CFT requirements.
Countries should require financial institutions and designated non-financial businesses and professions (DNFBPs) to identify, assess and take effective action to mitigate their money laundering and terrorist financing risks.
?>
F. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESREGULATION AND SUPERVISION27. Powers of supervisors Supervisors refers to the designated competent authorities or non-public bodies with responsibilities aimed at ensuring compliance by financial institutions (“financial supervisors” 60Including Core Principles supervisors who carry out supervisory functions that are related to the implementation of the FATF Recommendations.) and/or DNFBPs with requirements to combat money laundering and terrorist financing. Non-public bodies (which could include certain types of SRBs) should have the power to supervise and sanction financial institutions or DNFBPs in relation to the AML/CFT requirements. These nonpublic bodies should also be empowered by law to exercise the functions they perform, and be supervised by a competent authority in relation to such functions. |
Supervisors should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
have adequate powers to supervise or monitor, and ensure compliance by, financial institutions Financial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
with requirements to combat money laundering and terrorist financing Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations., including the
authority to conduct inspections. They should be authorised to compel production
of any information from financial institutions that is relevant to monitoring
such compliance, and to impose sanctions, in line with Recommendation 35, for
failure to comply with such requirements. Supervisors should have powers to
impose a range of disciplinary and financial sanctions, including the power to
withdraw, restrict or suspend the financial institution’s license, where
applicable.
F. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESREGULATION AND SUPERVISION28. Regulation and supervision of DNFBPs * |
Designated non-financial businesses and professions should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. be subject to regulatory and supervisory measures as set out below.
Countries should ensure that the other categories of DNFBPs are subject to effective systems for monitoring and ensuring compliance with AML/CFT requirements. This should be performed on a risk-sensitive basis. This may be performed by (a) a supervisor or (b) by an appropriate self-regulatory body (SRB) A SRB is a body that represents a profession (e.g. lawyers, notaries, other independent legal professionals or accountants), and which is made up of members from the profession, has a role in regulating the persons that are qualified to enter and who practise in the profession, and also performs certain supervisory or monitoring type functions. Such bodies should enforce rules to ensure that high ethical and moral standards are maintained by those practising the profession., provided that such a body can ensure that its members comply with their obligations to combat money laundering and terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations..
The supervisor or SRB should also (a) take the necessary measures to prevent criminals or their associates from being professionally accredited, or holding or being the beneficial owner of a significant or controlling interest or holding a management function, e.g. through evaluating persons on the basis of a “fit and proper” test; and (b) have effective, proportionate, and dissuasive sanctions in line with Recommendation 35 available to deal with failure to comply with AML/CFT requirements.
F. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESOPERATIONAL AND LAW ENFORCEMENT29. Financial intelligence units* |
Countries should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. establish a financial intelligence unit (FIU) that serves as a national centre for the receipt and analysis of: (a) suspicious transaction reports; and (b) other information relevant to money laundering, associated predicate offences and terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations., and for the dissemination of the results of that analysis. The FIU should be able to obtain additional information from reporting entities, and should have access on a timely basis to the financial, administrative and law enforcement information that it requires to undertake its functions properly.
F. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESOPERATIONAL AND LAW ENFORCEMENT30. Responsibilities of law enforcement and investigative authorities* |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
ensure that designated law enforcement authorities have responsibility for money
laundering and terrorist financing
Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations. investigations
within the framework of national AML/CFT policies. At least in all cases related
to major proceeds-generating offences, these designated law enforcement
authorities should develop a pro-active parallel financial investigation when
pursuing money laundering, associated predicate offences and terrorist
financing. This should include cases where the associated predicate offence
occurs outside their jurisdictions. Countries should ensure that competent
authorities have responsibility for expeditiously identifying, tracing and
initiating actions to freeze In the context of confiscation and provisional
measures (e.g., Recommendations 4, 32 and 38), the term freeze means to
prohibit the transfer, conversion, disposition or movement of any property,
equipment or other instrumentalities on the basis of, and for the duration
of the validity of, an action initiated by a competent authority or a court
under a freezing mechanism, or until a forfeiture or confiscation
determination is made by a competent authority.
For the purposes of Recommendations 6 and 7 on the implementation of
targeted financial sanctions, the term freeze means to prohibit the
transfer, conversion, disposition or movement of any funds or other assets
that are owned or controlled by designated persons or entities on the basis
of, and for the duration of the validity of, an action initiated by the
United Nations Security Council or in accordance with applicable Security
Council resolutions by a competent authority or a court.
In all cases, the frozen property, equipment, instrumentalities, funds or
other assets remain the property of the natural or legal person(s) that held
an interest in them at the time of the freezing and may continue to be
administered by third parties, or through other arrangements established by
such natural or legal person(s) prior to the initiation of an action under a
freezing mechanism, or in accordance with other national provisions. As part
of the implementation of a freeze, countries may decide to take control of
the property, equipment, instrumentalities, or funds or other assets as a
means to protect against flight.
and seize The term seize means to prohibit the transfer,
conversion, disposition or movement of property on the basis of an action
initiated by a competent authority or a court under a freezing mechanism.
However, unlike a freezing action, a seizure is effected by a mechanism that
allows the competent authority or court to take control of specified
property. The seized property remains the property of the natural or legal
person(s) that holds an interest in the specified property at the time of
the seizure, although the competent authority or court will often take over
possession, administration or management of the seized property. property Property means assets of every kind, whether
corporeal or incorporeal, moveable or immoveable, tangible or intangible,
and legal documents or instruments evidencing title to, or interest in such
assets. that is, or may become, subject to confiscationThe
term confiscation, which includes forfeiture where applicable, means
the permanent deprivation of funds or other assets by order of a competent
authority or a court. Confiscation or forfeiture takes place through a
judicial or administrative procedure that transfers the ownership of
specified funds or other assets to be transferred to the State. In this
case, the person(s) or entity(ies) that held an interest in the specified
funds or other assets at the time of the confiscation or forfeiture loses
all rights, in principle, to the confiscated or forfeited funds or other
assets. Confiscation or forfeiture orders are usually linked to a criminal
conviction or a court decision whereby the confiscated or forfeited property
is determined to have been derived from or intended for use in a violation
of the law., or is suspected of being proceeds Proceeds refers to any property derived from or
obtained, directly or indirectly, through the commission of an
offence. of crime. Countries should also make use, when necessary, of
permanent or temporary multi-disciplinary groups specialised in financial or
asset investigations. Countries should ensure that, when necessary, cooperative
investigations with appropriate competent authorities in other countries take
place.
F. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESOPERATIONAL AND LAW ENFORCEMENT31. Powers of law enforcement and investigative authorities* |
When conducting investigations of money laundering, associated predicate offences
and terrorist financing Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations., competent
authorities should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
be able to obtain access to all necessary documents and information for use in
those investigations, and in prosecutions and related actions. This should
include powers to use compulsory measures for the production of records held by
financial institutionsFinancial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
, DNFBPs and other natural or legal
persons Legal persons refers to any
entities other than natural persons that can establish a permanent customer
relationship with a financial institution or otherwise own property. This
can include companies, bodies corporate, foundations, anstalt, partnerships,
or associations and other relevantly similar entities., for the
search of persons and premises, for taking witness statements, and for the
seizure and obtaining of evidence.
Countries should ensure that competent authorities conducting investigations are able to use a wide range of investigative techniques suitable for the investigation of money laundering, associated predicate offences and terrorist financing. These investigative techniques include: undercover operations, intercepting communications, accessing computer systems and controlled delivery. In addition, countries should have effective mechanisms in place to identify, in a timely manner, whether natural or legal persons hold or control accountsReferences to �accounts� should be read as including other similar business relationships between financial institutions and their customers.. They should also have mechanisms to ensure that competent authorities have a process to identify assets without prior notification to the owner. When conducting investigations of money laundering, associated predicate offences and terrorist financing, competent authorities should be able to ask for all relevant information held by the FIU.
F. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESOPERATIONAL AND LAW ENFORCEMENT32. Cash couriers* |
Countries should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. have measures in place to detect the physical cross-border transportation refers to any in-bound or out-bound physical transportation of currency or BNIs from one country to another country. The term includes the following modes of transportation: (1) physical transportation by a natural person, or in that person's accompanying luggage or vehicle; (2) shipment of currency or BNIs through containerised cargo or (3) the mailing of currency or BNIs by a natural or legal person. of currency Currency refers to banknotes and coins that are in circulation as a medium of exchange. and bearer negotiable instrumentsBearer negotiable instruments (BNIs) includes monetary instruments in bearer form such as: traveller's cheques; negotiable instruments (including cheques, promissory notes and money orders) that are either in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title thereto passes upon delivery; incomplete instruments (including cheques, promissory notes and money orders) signed, but with the payee's name omitted., including through a declaration system and/or disclosure system.
Countries should ensure that their competent authorities have the legal authority to stop or restrain currency or bearer negotiable instruments that are suspected to be related to terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations., money laundering or predicate offences, or that are falsely declared or disclosed.
Countries should ensure that effective, proportionate and dissuasive sanctions are available to deal with persons who make false declaration refers to a misrepresentation of the value of currency or BNIs being transported, or a misrepresentation of other relevant data which is required for submission in the declaration or otherwise requested by the authorities. This includes failing to make a declaration as required. (s) or disclosure(s). In cases where the currency or bearer negotiable instruments are related to terrorist financing, money laundering or predicate offences, countries should also adopt measures, including legislative ones consistent with Recommendation 4, which would enable the confiscationThe term confiscation, which includes forfeiture where applicable, means the permanent deprivation of funds or other assets by order of a competent authority or a court. Confiscation or forfeiture takes place through a judicial or administrative procedure that transfers the ownership of specified funds or other assets to be transferred to the State. In this case, the person(s) or entity(ies) that held an interest in the specified funds or other assets at the time of the confiscation or forfeiture loses all rights, in principle, to the confiscated or forfeited funds or other assets. Confiscation or forfeiture orders are usually linked to a criminal conviction or a court decision whereby the confiscated or forfeited property is determined to have been derived from or intended for use in a violation of the law. of such currency or instruments.
E. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESGENERAL REQUIREMENTS33. Statistics* |
Countries should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. maintain comprehensive statistics on matters relevant to the effectiveness and efficiency of their AML/CFT systems. This should include statistics on the STRs received and disseminated; on money laundering and terrorist financing Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations. investigations, prosecutions and convictions; on property frozen, seized The term seize means to prohibit the transfer, conversion, disposition or movement of property on the basis of an action initiated by a competent authority or a court under a freezing mechanism. However, unlike a freezing action, a seizure is effected by a mechanism that allows the competent authority or court to take control of specified property. The seized property remains the property of the natural or legal person(s) that holds an interest in the specified property at the time of the seizure, although the competent authority or court will often take over possession, administration or management of the seized property. and confiscated; and on mutual legal assistance or other international requests for cooperation.
E. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESGENERAL REQUIREMENTS34. Guidance and feedback* |
The competent authorities, supervisors
Supervisors refers to the designated competent
authorities or non-public bodies with responsibilities aimed at ensuring
compliance by financial institutions ("financial supervisors") Including
Core Principles supervisors who carry out supervisory functions that are
related to the implementation of the FATF Recommendations.) and/or DNFBPs
with requirements to combat money laundering and terrorist financing.
Non-public bodies (which could include certain types of SRBs) should have
the power to supervise and sanction financial institutions or DNFBPs in
relation to the AML/CFT requirements. These nonpublic bodies should also be
empowered by law to exercise the functions they perform, and be supervised
by a competent authority in relation to such functions. and SRBs should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
establish guidelines, and provide feedback, which will assist financial institutionsFinancial institutions means any natural or
legal person who conducts as abusiness one or more of the following
activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
and designated non-financial businesses and professions in applying national
measures to combat money laundering and terrorist financing Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations., and, in
particular, in detecting and reporting suspicious transactions.
F. POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES, AND OTHER INSTITUTIONAL MEASURESSANCTIONS35. Sanctions |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
ensure that there is a range of effective, proportionate and dissuasive
sanctions, whether criminal, civil or administrative, available to deal with
natural or legal persons Legal persons refers to any entities other than
natural persons that can establish a permanent customer relationship with a
financial institution or otherwise own property. This can include companies,
bodies corporate, foundations, anstalt, partnerships, or associations and
other relevantly similar entities. covered by Recommendations 6, and
8 to 23, that fail to comply with AML/CFT requirements. Sanctions should be
applicable not only to financial
institutions Financial institutions
means any natural or legal person who conducts as abusiness one or more of
the following activities or operations for or on behalf of a customer:
1) Acceptance of deposits and other repayable funds from the public.
2) Lending.
3) Financial leasing.
4) Money or value transfer services.
5) Issuing and managing means of payment (e.g. credit and debit
cards,cheques, traveller's cheques, money orders and bankers' drafts,
electronic money).
6) Financial guarantees and commitments.
7) Trading in:
a) money market instruments (cheques, bills, certificates of deposit,
derivatives etc.);
b) foreign exchange;
c) exchange, interest rate and index instruments;
d) transferable securities;
8) Participation in securities issues and the provision of financial
services related to such issues.
9) Individual and collective portfolio management.
11) Otherwise investing, administering or managing funds or money on behalf
of other persons.
12) Underwriting and placement of life insurance and other investment
related insurance.
13) Money and currency changing.
and DNFBPs, but also to their directors and senior management.
G. INTERNATIONAL COOPERATION36. International instruments* |
Countries should For the purposes of assessing compliance with the FATF Recommendations, the word should has the same meaning as must. take immediate steps to become party to and implement fully the Vienna Convention, 1988; the Palermo Convention, 2000; the United Nations Convention against Corruption, 2003; and the Terrorist Financing Convention, 1999. Where applicable, countries are also encouraged to ratify and implement other relevant international conventions, such as the Council of Europe Convention on Cybercrime, 2001; the Inter-American Convention against Terrorism, 2002; and the Council of Europe Convention on Laundering, Search, Seizure and confiscationThe term confiscation, which includes forfeiture where applicable, means the permanent deprivation of funds or other assets by order of a competent authority or a court. Confiscation or forfeiture takes place through a judicial or administrative procedure that transfers the ownership of specified funds or other assets to be transferred to the State. In this case, the person(s) or entity(ies) that held an interest in the specified funds or other assets at the time of the confiscation or forfeiture loses all rights, in principle, to the confiscated or forfeited funds or other assets. Confiscation or forfeiture orders are usually linked to a criminal conviction or a court decision whereby the confiscated or forfeited property is determined to have been derived from or intended for use in a violation of the law. of the Proceeds from Crime and on the Financing of Terrorism, 2005.
G. INTERNATIONAL COOPERATION37. Mutual legal assistance |
Countries should rapidly, constructively and effectively provide the widest possible range of mutual legal assistance in relation to money laundering, associated predicate offences and terrorist financing investigations, prosecutions, and related proceedings. Countries should have an adequate legal basis for providing assistance and, where appropriate, should have in place treaties, arrangements or other mechanisms to enhance cooperation. In particular, countries should:
Countries should render mutual legal assistance, notwithstanding the absence of dual criminality, if the assistance does not involve coercive actions. Countries should consider adopting such measures as may be necessary to enable them to provide a wide scope of assistance in the absence of dual criminality
Where dual criminality is required for mutual legal assistance, that requirement should be deemed to be satisfied regardless of whether both countries place the offence within the same category of offence, or denominate the offence by the same terminology, provided that both countries criminalise the conduct underlying the offence.
Countries should ensure that, of the powers and investigative techniques required under Recommendation 31, and any other powers and investigative techniques available to their competent authorities:
are also available for use in response to requests for mutual legal assistance, and, if consistent with their domestic framework, in response to direct requests from foreign judicial or law enforcement authorities to domestic counterparts.
To avoid conflicts of jurisdiction, consideration should be given to devising and applying mechanisms for determining the best venue for prosecution of defendants in the interests of justice in cases that are subject to prosecution in more than one country.
Countries should, when making mutual legal assistance requests, make best efforts to provide complete factual and legal information that will allow for timely and efficient execution of requests, including any need for urgency, and should send requests using expeditious means. Countries should, before sending requests, make best efforts to ascertain the legal requirements and formalities to obtain assistance.
The authorities responsible for mutual legal assistance (e.g. a Central Authority) should be provided with adequate financial, human and technical resources. Countries should have in place processes to ensure that the staff of such authorities maintain high professional standards, including standards concerning confidentiality, and should be of high integrity and be appropriately skilled.
G. INTERNATIONAL COOPERATION38. Mutual legal assistance: freezing and confiscation* |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
ensure that they have the authority to take expeditious action in response to
requests by foreign countries to identify, freeze In the
context of confiscation and provisional measures (e.g., Recommendations 4,
32 and 38), the term freeze means to prohibit the transfer, conversion,
disposition or movement of any property, equipment or other
instrumentalities on the basis of, and for the duration of the validity of,
an action initiated by a competent authority or a court under a freezing
mechanism, or until a forfeiture or confiscation determination is made by a
competent authority.
For the purposes of Recommendations 6 and 7 on the implementation of
targeted financial sanctions, the term freeze means to prohibit the
transfer, conversion, disposition or movement of any funds or other assets
that are owned or controlled by designated persons or entities on the basis
of, and for the duration of the validity of, an action initiated by the
United Nations Security Council or in accordance with applicable Security
Council resolutions by a competent authority or a court.
In all cases, the frozen property, equipment, instrumentalities, funds or
other assets remain the property of the natural or legal person(s) that held
an interest in them at the time of the freezing and may continue to be
administered by third parties, or through other arrangements established by
such natural or legal person(s) prior to the initiation of an action under a
freezing mechanism, or in accordance with other national provisions. As part
of the implementation of a freeze, countries may decide to take control of
the property, equipment, instrumentalities, or funds or other assets as a
means to protect against flight.
, seize The term seize means to prohibit the transfer,
conversion, disposition or movement of property on the basis of an action
initiated by a competent authority or a court under a freezing mechanism.
However, unlike a freezing action, a seizure is effected by a mechanism that
allows the competent authority or court to take control of specified
property. The seized property remains the property of the natural or legal
person(s) that holds an interest in the specified property at the time of
the seizure, although the competent authority or court will often take over
possession, administration or management of the seized property. and
confiscate property Property means assets of every kind, whether
corporeal or incorporeal, moveable or immoveable, tangible or intangible,
and legal documents or instruments evidencing title to, or interest in such
assets. laundered; proceeds
Proceeds refers to any property derived from or
obtained, directly or indirectly, through the commission of an
offence. from money laundering, predicate offences and terrorist financing Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations.;
instrumentalities used in, or intended for use in, the commission of these
offences; or property of corresponding value. This authority should include
being able to respond to requests made on the basis of non-conviction-based confiscationThe term confiscation, which includes
forfeiture where applicable, means the permanent deprivation of funds or
other assets by order of a competent authority or a court. Confiscation or
forfeiture takes place through a judicial or administrative procedure that
transfers the ownership of specified funds or other assets to be transferred
to the State. In this case, the person(s) or entity(ies) that held an
interest in the specified funds or other assets at the time of the
confiscation or forfeiture loses all rights, in principle, to the
confiscated or forfeited funds or other assets. Confiscation or forfeiture
orders are usually linked to a criminal conviction or a court decision
whereby the confiscated or forfeited property is determined to have been
derived from or intended for use in a violation of the law.
proceedings and related provisional measures, unless this is inconsistent with
fundamental principles of their domestic law. Countries should also have
effective mechanisms for managing such property, instrumentalities or property
of corresponding value, and arrangements for coordinating seizure and
confiscation proceedings, which should include the sharing of confiscated
assets.
G. INTERNATIONAL COOPERATION39. Extradition |
Countries should For the purposes of assessing compliance with the
FATF Recommendations, the word should has the same meaning as must.
constructively and effectively execute extradition requests in relation to money
laundering and terrorist financing
Terrorist financing is the financing of terrorist
acts, and of terrorists and terrorist organisations., without undue
delay. Countries should also take all possible measures to ensure that they do
not provide safe havens for individuals charged with the financing of terrorism,
terrorist acts
A terrorist act includes:
1) an act which constitutes an offence within the scope of, and as defined
in one of the following treaties: (i) Convention for the Suppression of
Unlawful Seizure of Aircraft (1970); (ii) Convention for the Suppression of
Unlawful Acts against the Safety of Civil Aviation (1971); (iii) Convention
on the Prevention and Punishment of Crimes against Internationally Protected
Persons, including Diplomatic Agents (1973); (iv) International Convention
against the Taking of Hostages (1979); (v) Convention on the Physical
Protection of Nuclear Material (1980); (vi) Protocol for the Suppression of
Unlawful Acts of Violence at Airports Serving International Civil Aviation,
supplementary to the Convention for the Suppression of Unlawful Acts against
the Safety of Civil Aviation (1988); (vii) Convention for the Suppression of
Unlawful Acts against the Safety of Maritime Navigation ( 2005); (viii)
Protocol for the Suppression of Unlawful Acts against the Safety of Fixed
Platforms located on the Continental Shelf (2005); (ix) International
Convention for the Suppression of Terrorist Bombings (1997); and (x)
International Convention for the Suppression of the Financing of Terrorism
(1999).
2) any other act intended to cause death or serious bodily injury to a
civilian, or to any other person not taking an active part in the
hostilities in a situation of armed conflict, when the purpose of such act,
by its nature or context, is to intimidate a population, or to compel a
Government or an international organisation to do or to abstain from doing
any act.
or terrorist organisations The term terrorist organisation refers to any group
of terrorists that: (i) commits, or attempts to commit, terrorist acts by
any means, directly or indirectly, unlawfully and wilfully; (ii)
participates as an accomplice in terrorist acts; (iii) organises or directs
others to commit terrorist acts; or (iv) contributes to the commission of
terrorist acts by a group of persons acting with a common purpose where the
contribution is made intentionally and with the aim of furthering the
terrorist act or with the knowledge of the intention of the group to commit
a terrorist act.. In particular, countries should:
Each countryAll references in the FATF Recommendations to country or countries apply equally to territories or jurisdictions. should either extradite its own nationals, or, where a country does not do so solely on the grounds of nationality, that country should, at the request of the country seeking extradition, submit the case, without undue delay, to its competent authorities for the purpose of prosecution of the offences set forth in the request. Those authorities should take their decision and conduct their proceedings in the same manner as in the case of any other offence of a serious nature under the domestic law of that country. The countries concerned should cooperate with each other, in particular on procedural and evidentiary aspects, to ensure the efficiency of such prosecutions.
Where dual criminality is required for extradition, that requirement should be deemed to be satisfied regardless of whether both countries place the offence within the same category of offence, or denominate the offence by the same terminology, provided that both countries criminalise the conduct underlying the offence.
Consistent with fundamental principles of domestic law This refers to the basic legal principles upon which national legal systems are based and which provide a framework within which national laws are made and powers are exercised. These fundamental principles are normally contained or expressed within a national Constitution or similar document, or through decisions of the highest level of court having the power to make binding interpretations or determinations of national law. Although it will vary from country to country, some examples of such fundamental principles include rights of due process, the presumption of innocence, and a person�s right to effective protection by the courts., countries should have simplified extradition mechanisms, such as allowing direct transmission of requests for provisional arrests between appropriate authoritiesRefers to competent authorities, including accrediting institutions, and self-regulatory bodies., extraditing persons based only on warrants of arrests or judgments, or introducing a simplified extradition of consenting persons who waive formal extradition proceedings. The authorities responsible for extradition should be provided with adequate financial, human and technical resources. Countries should have in place processes to ensure that the staff of such authorities maintain high professional standards, including standards concerning confidentiality, and should be of high integrity and be appropriately skilled.
G. INTERNATIONAL COOPERATION40. Other forms of international cooperation* |
Countries should ensure that their competent authorities can rapidly, constructively and effectively provide the widest range of international cooperation in relation to money laundering, associated predicate offences and terrorist financing. Countries should do so both spontaneously and upon request, and there should be a lawful basis for providing cooperation. Countries should authorise their competent authorities to use the most efficient means to cooperate. Should a competent authority need bilateral or multilateral agreements or arrangements, such as a Memorandum of Understanding (MOU), these should be negotiated and signed in a timely way with the widest range of foreign counterparts.
Competent authorities should use clear channels or mechanisms for the effective transmission and execution of requests for information or other types of assistance. Competent authorities should have clear and efficient processes for the prioritisation and timely execution of requests, and for safeguarding the information received.