Financial Action Task Force

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Financial Action Task Force (FATF) and the FATF Recommendations

FATF is an inter-governmental body that was set up in 1989 in response to the threat of anti-money laundering. The main role of FATF is to examine how criminals launder money and the various techniques that they use, to outline measures to combat money laundering and finally to review actions taken at national and international level to implement these measures. FATF also have extended its remit to include Counter Terrorist Financing and the proliferation of weapons of mass destruction.

It monitors the progress of countries in introducing AML and CFT measures using a variety of techniques including Mutual Evaluation Reports. FATF completed a mutual evaluation report of Ireland in 2005 and is due to return to complete one in 2015. For a copy of Irelands Mutual Evaluation report which was published on the 17th February 2006 click here

FATF have produced a number of recommendations (in 1990, 2003 and finally revised in 2012) that provide a framework for countries to fight money laundering and terrorist financing. The recommendations are broken down in the following areas:

• AML/CFT Policies and Coordination

• Money Laundering and Confiscation

• Terrorist Financing and Financing of Proliferation

• Preventative Measures

• Transparency and Beneficial Ownership of Legal Persons and Arrangements

• Powers and Responsibilities of Competent authorities and other institutional measures

• International Cooperation

The last revision in February 2012 brought key changes in the following areas:

• Tax crimes are now predicate offences

• Politically Exposed Persons to include domestic PEPS as well as foreign PEPS

• Wire Transfers to require information on the originator as well as the beneficiary

• Step by step process for identifying beneficial ownership

For a copy of the revised FATF Recommendations click here