FATF

The Financial Action Task Force (FATF)is the world’s leading regulator against illicit financial behavior. The FATF issues non-legal guidance (called Recommendations) that they expect their 200+ member jurisdictions to implement or face punitive actions. The FATF was mandated by the G7 in 1989 to create global Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policies and frameworks. These guidelines provide an international infrastructure that connects global finance, law enforcement, criminal justice systems and facilitates cooperation between authorities worldwide.

The 40 Recommendations provide a complete set of counter-measures against money laundering (ML)covering the criminal justice system and law enforcement, the financial system and its regulation, and international co-operation.

They have been recognized, endorsed, or adopted by many international bodies. The Recommendations are neither complex nor difficult, nor do they compromise the freedom to engage in legitimate transactions or threaten economic development. They set out the principles for action and allow countries a measure of flexibility in implementing these principles according to their particular circumstances and constitutional frameworks. Though not a binding international convention, many countries in the world have made a political commitment to combat money laundering by implementing the 40 Recommendations.