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12 Key Standards and Self Assessments- Code 9

9. The Financial Action Task Force's 40 Recommendations on Money Laundering and 9 Special Recommendations on Terrorist Financing.

Description | Standard | FATF Mutual Evaluation Report Executive Summary | FATF Mutual Evaluation Report | FATF Mutual Evaluation Report Annexes


In response to mounting concern over money laundering and in recognition of the threat posed to the financial system and to financial institutions, the FATF earlier developed international standards (FATF 40 Recommendations) for countries to adopt to effectively combat money laundering. After the events of September 11, 2001, FATF adopted 9 Special Recommendations on Terrorist Financing.

The FATF 40 set out a comprehensive framework for anti-money laundering efforts, and encompass criminal justice and law enforcement, the financial system and its regulation, and international co-operation. Countries have diverse legal and financial systems and therefore all cannot take identical measures. The FATF 40 lay out principles for countries to implement according to their particular circumstances and constitutional frameworks. In a related initiative, FATF identifies countries and jurisdictions that do not cooperate in the international fight against money laundering.

Adopted on October 31, 2001 and updated on October 22, 2004, Recommendations on Terrorist Financing, when combined with the FATF 40, set out a comprehensive framework to detect, prevent and suppress the financing of terrorism and terrorist acts.

FATF conducts mutual evaluations of its members’ compliance with the 40+9 recommendations. FATF completed an evaluation of the U.S. compliance with anti-money laundering and counter-terrorist financing (AML/CFT) standards in June 2006.

Last Updated: 12/1/2010 8:43 AM