Global Anti-Money Laundering Standard

Today in Paris, the Financial Action Task Force (FATF) announced that it is in the process of consulting all interested parties in the review of its “Forty Recommendations”. These recommendations have become the global anti-money laundering standard. The FATF is committed to ensuring that the Recommendations adequately address changes in money laundering techniques and trends, new international developments, and other factors.

A Consultation Paper has been released, setting out the range of issues being considered in the review, and the document also provides options for dealing with the risks or proposals that are raised. (see pdf below)

The paper is divided into three main sections, pertaining to the following topics:

– Customer identification and due diligence, suspicious transaction reporting and regulation and supervision.

– Information on the beneficial owners and controllers of corporate vehicles e.g. companies, trusts, foundations etc – covering the risks, the purposes for which such information is required, the essential requirements that need to be met, and possible measures that could be taken, with particular attention to bearer shares and trusts.

– The categories of non-financial businesses and professions that have been increasingly identified as being misused for money laundering. *(Note: The FATF is considering the possibility of extending the Forty Recommendations to seven such categories: casinos and other gambling businesses; dealers in real estate and high value items; company and trust service providers; lawyers; notaries; accounting professionals and investment advisors.)*

The FATF has invited interested parties to provide comments on the proposals contained in the Consultation Paper, no later than 31 August 2002.