FATF Recommendations
Definition
The 40 international standards issued by the Financial Action Task Force that set out the measures countries should implement to prevent money laundering, terrorist financing, and proliferation financing. First issued in 1990, substantially revised in 2012, and updated periodically. The primary benchmark for AML compliance assessments worldwide.
Related terms
- Beneficial ownership
- The natural person(s) who ultimately own or control a legal entity or arrangement, or on whose behalf a transaction is conducted. FATF...
- Customer due diligence (CDD)
- The process of identifying and verifying the identity of a customer and their beneficial owner, understanding the purpose of the business relationship,...
- Mutual Evaluation Report (MER)
- An assessment of a country's compliance with the FATF Recommendations, conducted by FATF-style regional bodies or by FATF itself. Published publicly. Identifies...
- Suspicious activity report (SAR)
- A disclosure filed with the financial intelligence unit when a reporting entity knows, suspects, or has reasonable grounds to suspect that a...
- Transaction monitoring system (TMS)
- An automated system that screens transaction data against a library of typologies and thresholds to generate alerts for potential money laundering. A...
Explained in
- AML Compliance Audits and FATF StandardsThe 40 international standards issued by the Financial Action Task Force that set out the measures countries should implement to prevent money laundering, terr...