fatf recommendations 2

8/9/2019 FATF Recommendations 2

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INTERNATIONALST

ANDARDS

ONCOMBATINGMONEYLAUNDERING

ANDTHEFINANCIN

GOF

TERRORISM&PROLIFERATION

February2012

FINANCIALACTIONTASKFORCE

TheFinancialActionTaskForce(FATF)isanindependentinter-governmen

talbodythatdevelopsand

promotespoliciestopro

tecttheglobalfinancialsystem

againstmoneylaundering,terroristfinancing

andthefinancingofpro

liferationofweaponsofmassdestruction.TheFATFRecommendationsare

recognisedastheglobala

nti-moneylaundering(AML)andcounter-terroristf

inancing(CFT)standard.

FormoreinformationabouttheFATF,pleasevisitthewebsite:

www.fatf-gafi.org

2013FATF/OECD.Allrightsreserved.

Noreproductionortr

anslationofthispublicationmaybemadewithoutpriorwrittenpermission.

Applicationsforsuchpermission,forallorpartofthispublication,s

houldbemadeto

theFATFSecretariat,2rueAndrPascal75775ParisCedex16,France

(fax:+33144306137ore-mail:[email protected]).


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INTERNATIONALSTAN

DARDS

ONCOMBATINGMONEYLAUNDERING

ANDTHEFINANCING

OFTERRORISM

&PROLIFERATION

THEFATFRECOMMENDATIONS

FEBRUARY2012

PrintedFebruary2013


INTERNATIONALSTANDARDSON

COMBATINGMONEYLAUNDERINGANDTHEFINANCINGOF


2

2013


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INTERNATION

ALSTANDARDSONCOMBATINGMONEYLAUNDERINGANDTHEFINANCINGOFTERRORISM&PROLIFERATION

2013

3

CONTENTS

ListoftheFATFRecommendations

4

Introduction

7

FATFRecommendations

11

InterpretiveNotes

31

Noteonthelegalbasisofrequirements

onfinancialinstitutionsandDNFBPs

108

Glossary

109

TableofAcronyms

125

AnnexI:FATFGuidanceDocuments

126

AnnexII:Informationonupdatesmade

totheFATFRecommendations

128





4

2013


Number

OldNumber1

AAML/CFTPOLICIESANDCOORDINATION

1

-

Assessingrisks&applyingarisk-basedapproa

ch*

2

R.31

Nationalcooperationandcoordination

BMONEYLAUNDERINGANDCONFISCATION

3

R.1&R.2

Moneylaunderingoffence*

4

R.3

Confiscationandprovisionalmeasures*

CTERRORISTFINANCINGANDFINANCINGO

FPROLIFERATION

5

SRII

Terroristfinancingoffence*

6

SRIII

Targetedfinancialsanctionsrelatedtoterrorism&terroristfinancing*

7

Targetedfinancialsanctionsrelatedtoproliferation*

8

SRVIII

Non-profitorganisations*

DPREVENTIVEMEASURES

9

R.4

Financialinstitutionsecrecylaws

Customerduediligenceandrecordkeeping

10

R.5

Customerduediligence*

11

R.10

Recordkeeping

Additionalmeasuresforspecificcustomersandactivities

12

R.6

Politicallyexposedpersons*

13

R.7

Correspondentbanking*

14

SRVI

Moneyorvaluetransferservices*

15

R.8

Newtechnologies

16

SRVII

Wiretransfers*

Reliance,ControlsandFinancialGroups

17

R.9

Relianceonthirdparties*

18

R.15&R.22

Internalcontrolsandforeignbranchesandsubsidiaries*

19

R.21

Higher-riskcountries*

Reportingofsuspicioustransactions

20

R.13&SRIV

Reportingofsuspicioustransactions*

21

R.14

Tipping-offandconfidentiality

Designatednon-financialBusinessesandProfessions(DNFBPs)

22

R.12

DNFBPs:Customerduediligence*

23

R.16

DNFBPs:Othermeasures*


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5

ETRANSPARENCYANDBENEFI

CIALOWNERSHIP

OFLEGALPERSONSANDARRANGEMENTS

24

R.33

Transparencyandbeneficialown

ershipoflegalpersons*

25

R.34

Transparencyandbeneficialown

ershipoflegalarrangements*

FPOWERSANDRESPONSIBILIT

IESOFCOMPETENTAUTHORITIES

ANDOTHERINSTITUTIONALMEASURES

RegulationandSupervision

26

R.23

Regulationandsupervisionoffinancialinstitutions*

27

R.

29

Powersofsupervisors

28

R.24

RegulationandsupervisionofDN

FBPs

OperationalandLawEnforcement

29

R.

26

Financialintelligenceunits*

30

R.27

Responsibilitiesoflawenforcementandinvestigativeauthorities*

31

R.28

Powersoflawenforcementandinvestigativeauthorities

32

SR

IX

Cashcouriers*

GeneralRequirements

33

R.

32

Statistics

34

R.

25

Guidanceandfeedback

Sanctions

35

R.

17

Sanctions

GINTERNATIONALCOOPERATION

36

R.

35&SRI

Internationalinstruments

37

R.

36&SRV

Mutuallegalassistance

38

R.

38

Mutuallegalassistance:freezing

andconfiscation*

39

R.

39

Extradition

40

R.40

Otherformsofinternationalcooperation*

1.

Theoldnumbercolumnreferstothecorresponding2003FATFRecommendation.

*

Recommendationsmarkedwithanasteriskhaveinterpretive

notes,whichshouldbereadin

conjunction

withtheRecommendation.

Versionasado

ptedon15February2012.





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2013


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9

PracticePapers,whichareavailableontheFATFwebs

ite,isincludedasanannextothe

Recommendations.

TheFATFiscommittedtomaintainingacloseandconstructivedialoguewiththeprivatesector,

civilsocietyandotherinterestedparties,asimportantpartnersinensuringtheintegrityofthe

financialsystem.TherevisionoftheRecommendationsha

sinvolvedextensiveconsultation,and

hasbenefited

from

commentsandsuggestionsfrom

thesestakeholders.Goingforwardandin

accordancew

ithitsmandate,theFATFwillcontinuetoc

onsiderchangestothestandards,as

appropriate,inlightofnewinformationregardingemergingthreatsandvulnerabilitiestotheglobal

financialsyste

m.

TheFATFcallsuponallcountriestoimplementeffectiveme

asurestobringtheirnationalsystems

forcombatin

gmoneylaundering,terroristfinancingandthefinancingofproliferationinto

compliancew

iththerevisedFATFRecommendations.





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2013


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21

(c)

Trustand

companyserviceprovidersshould

berequired

toreportsuspicious

transactionsforaclientwhen,onbehalfoforforaclient,theyengageinatransaction

inrelationtotheactivitiesreferredtoinparagraph(e)ofRecommendation22.





22

2013

E.

TRANSPARENCY

ANDBENEFICIALOWNERSHIPOFLEGALPERSONSAND

ARRANGEMENT

S

24.

Transparencyand

beneficialownershipoflegalpersons*

Countriesshouldta

kemeasurestopreventthemisuseoflegalper

sonsformoneylaundering

orterroristfinancing.Countriesshouldensurethatthereisadequate,accurateandtimely

informationonthe

beneficialownershipandcontroloflegalpersonsthatcanbeobtainedor

accessedinatimelyfashionbycompetentauthorities.Inparticula

r,countriesthathavelegal

personsthatareabletoissuebearersharesorbearersharewarran

ts,orwhichallownominee

shareholdersornomineedirectors,shouldtakeeffectivemeasures

toensurethattheyarenot

misusedformoney

launderingorterroristfinancing.Countriessh

ouldconsidermeasuresto

facilitateaccesstobeneficialownershipandcontrolinformationb

yfinancialinstitutionsand

DNFBPsundertakin

gtherequirementssetoutinRecommendation

s10and22.

25.

Transparencyand

beneficialownershipoflegalarrangements*

Countriesshouldt

akemeasurestopreventthemisuseoflegalarrangementsformoney

launderingorterroristfinancing.Inparticular,countriesshoulden

surethatthereisadequate,

accurateandtimelyinformationonexpresstrusts,includinginformationonthesettlor,

trusteeandbenefic

iaries,thatcanbeobtainedoraccessedinatimelyfashionbycompetent

authorities.Countriesshouldconsidermeasurestofacilitateacce

sstobeneficialownership

andcontrolinformationbyfinancialinstitutionsandDNFBPsund

ertakingtherequirements

setoutinRecomme

ndations10and22.


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INTERNATION


2013

35

liabilityisavailable.Suchmeasuresshouldbewithoutprejudicetothecriminal

liabilityofnaturalpersons.Allsanctionssh

ouldbeeffective,proportionateand

dissuasive.

(d)

Thereshouldbeappropriateancillaryoffencestotheoffenceofmoneylaundering,

includingparticipationin,associationwithor

conspiracytocommit,attempt,aiding

andabetting,facilitating,andcounsellingtheco

mmission,unlessthisisnotpermitted

byfundamentalprinciplesofdomesticlaw.





36

2013

INTERPRETIVENOTE

TORECOMMENDATIONS4AND38

(CONFISCATIONAND

PROVISIONALMEASURES)

Countriesshouldestablis

hmechanismsthatwillenabletheircompetentauthoritiestoeffectively

manageand,whennecessary,disposeof,propertythatisfrozenorseized,orhasbeenconfiscated.

Thesemechanismsshouldbeapplicablebothinthecontextofdomestic

proceedings,andpursuant

torequestsbyforeigncou

ntries.


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67

23.

Financialinstitutionsshouldberequiredtoensure

thatdocuments,dataorinformation

collecte

dundertheCDDprocessiskeptup-to-dateandrelevantbyundertakingreviewsof

existing

records,particularlyforhigher-riskcategories

ofcustomers.





68

2013

INTERPRETIVENOTE

TORECOMMENDATION12

(POLITICALLYEXPOSEDPERSONS)

Financialinstitutions

should

take

reasonable

measures

to

determine

whether

the

beneficiariesofalifeinsurancepolicyand/or,whererequired,t

hebeneficialownerofthe

beneficiaryarepoliticallyexposedpersons.Thisshouldoccuratthelatestatthetimeofthe

payout.Wherethe

rearehigherrisksidentified,inadditiontoperformingnormalCDD

measures,financial

institutionsshouldberequiredto:

a)

informsenio

rmanagementbeforethepayoutofthepolicyp

roceeds;and

b)

conductenh

ancedscrutinyonthewholebusinessrelation

shipwiththepolicyholder,

andconside

rmakingasuspicioustransactionreport.


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2013

69

INTERPRETIVENOTETORECOMMENDATION13

(CORRESPO

NDENTBANKING)

Thesim

ilarrelationshipstowhichfinancialinstitut

ionsshouldapplycriteria(a)to(e)

include,forexamplethoseestablishedforsecuritiestr

ansactionsorfundstransfers,whether

forthecross-borderfinancialinstitutionasprincipalor

foritscustomers.

Thetermpayable-throughaccountsreferstocorrespon

dentaccountsthatareuseddirectlyby

thirdpa

rtiestotransactbusinessontheirownbehalf.





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2013

INTERPRETIVENOTE

TORECOMMENDATION14

(MONEYORVALUET

RANSFERSERVICES)

Acountryneednot

imposeaseparatelicensingorregistrationsystemwithrespecttonatural

orlegalpersonsalreadylicensedorregisteredasfinancialinstitutions(asdefinedbythe

FATFRecommenda

tions)withinthatcountry,which,undersuch

licenseorregistration,are

permittedtoperformmoneyorvaluetransferservices,andwhicharealreadysubjecttothe

fullrangeofapplica

bleobligationsundertheFATFRecommendations.


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81

INTERPRETIVENOTETORECOMMENDATIONS22AND23

(DNFBPS)

1.

Thedes

ignatedthresholdsfortransactionsareasfollow

s:

Casinos(underRecommendation22)-USD/EUR3,000

Fordealersinpreciousmetalsanddealersinpreciousstoneswhenengaged

inanycashtransaction(underRecom

mendations22and23)-

USD/EUR15,000.

Financialtransactionsaboveadesignatedthresholdin

cludesituationswherethetransaction

iscarrie

doutinasingleoperationorinseveraloperationsthatappeartobelinked.

2.

TheInterpretiveNotesthatapplytofinancialinstitutio

nsarealsorelevanttoDNFBPs,where

applicable.TocomplywithRecommendations22and23,countriesdonotneedtoissuelaws

orenforceablemeansthatrelateexclusivelytolawyers,notaries,accountantsandtheother

designa

ted

non-financialbusinessesand

professions,so

long

asthese

businessesor

professionsareincludedinlawsorenforceablemeanscoveringtheunderlyingactivities.





82

2013

INTERPRETIVENOTE

TORECOMMENDATION22

(DNFBPSCUSTOME

RDUEDILIGENCE)

1.

RealestateagentsshouldcomplywiththerequirementsofRecom

mendation10withrespect

toboththepurchas

ersandvendorsoftheproperty.

2.

Casinosshouldim

plementRecommendation10,includingidentifyingandverifyingthe

identityofcustomers,whentheircustomersengageinfinancialtra

nsactionsequaltoorabove

USD/EUR3,000.Co

nductingcustomeridentificationattheentrytoacasinocouldbe,butis

notnecessarily,sufficient.Countriesmustrequirecasinostoensurethattheyareabletolink

customerduedilig

enceinformationforaparticularcustomertothetransactionsthatthe

customerconducts

inthecasino.


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ATINGMONEYLAUNDERINGANDTHEFINANCINGOFTERRORISM&PROLIFERATION

127

ommendations4and38)andaFrameworkforOngoingWorkon

oneyLaunderingandTerro

ristFinancingMeasuresandFinancial

ment(February2013).





128

2013

ANNEXII:INFORMAT

IONONUPDATESMADETOTHEFATF

RECOMMENDATIONS

ThefollowingamendmentshavebeenmadetotheFATFRecommendations

sincethetextwasadoptedin

February2012.

Date

Typeofam

endments

Sectionssubjecttoamend

ments

Feb2013

Alignment

oftheStandards

betweenR

.37andR.40

R.37(d)page27

InsertionofthereferencethatDNFBPsecrecyor

confidentialitylawsshou

ldnotaffecttheprovision

ofmutuallegalassistance,exceptwherethe

relevantinformationtha

tissoughtisheldin

circumstanceswhereleg

alprofessionalprivilegeor

legalprofessionalsecrec

yapplies.