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FATF 40 AML/CFT Recommendations

Q: Who is subject to these recommendations?

Banks, DNFBPs, VASPs, insurance companies, and other reporting entities across all FATF member and observer jurisdictions.

Global

2012

AML/CFT

Overview

The Financial Action Task Force (FATF) issued the 40 Recommendations as the global standard for combating money laundering, terrorist financing, and proliferation financing. First adopted in 1990 and last revised in 2012, these recommendations provide a comprehensive framework for jurisdictions to develop effective legal, regulatory, and operational measures.

The FATF Recommendations are applicable to banks, financial institutions, virtual asset service providers (VASPs), money service businesses, non-financial businesses, and regulatory authorities. They cover a wide range of obligations including risk assessment, customer due diligence (CDD), beneficial ownership transparency, suspicious transaction reporting (STR), and international cooperation. Compliance with these standards is assessed through periodic mutual evaluations.

Key Obligations

Conduct national risk assessments and implement a risk-based approach
Require CDD, recordkeeping, and STR from financial and non-financial institutions
Ensure transparency of legal persons and beneficial ownership

Establish competent authorities with adequate powers for AML/CFT supervision
Facilitate international cooperation in investigations and prosecutions

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Related Regulations

MENAFATF Regional FATF Standards

AML/CFT Law No. 20 of 2021

Basel Committee AML Guidelines

FAQ

Are FATF Recommendations legally binding?

No, but countries are expected to incorporate them into domestic laws. Non-compliance can result in grey or blacklisting.

Who is subject to these recommendations?

Banks, DNFBPs, VASPs, insurance companies, and other reporting entities across all FATF member and observer jurisdictions.

What is a mutual evaluation?

An assessment conducted by FATF or regional bodies to review how well a country implements the FATF standards.

What is the purpose of the 40 Recommendations?

To provide a uniform framework for preventing the misuse of financial systems for money laundering, terrorism financing, and proliferation financing.