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Financial Action Task Force (FATF) (FATF 40 Recommendations (highlights of…

- - - - Money laundering/ terrorist financing (ML/TF) risks are known
        
        International cooperation
        
        Supervisors regulate financial institutions and non-bank financial institutions (NBFIs)
        
        Financial institutions and NBFIs apply preventative measures and report suspicious transactions.
        
        Legal persons are not misused for ML/TF and beneficial ownership information is avail- able
        
        Financial intelligence information is used by authorities.
        
        Money laundering and Terrorist financing offenses are investigated, criminally prosecuted, and sanctions imposed.
        
        Proceeds of crime are confiscated.
        
        Terrorists and terrorist organizations are prevented from raising, moving, and using money,
        
        Persons and organizations involved in the proliferation of weapons of mass destruction are prevented from raising, moving, and using Money.
        
        goal
        
        Policy, cooperation, and coordinaton to mitigate money laundering and terrorist financing.
        
        Prevention of proceeds of crime into the financial system and reporting of such when they do.
        
        Detection and disruption of of ML/TF threats.
- - - - — Establish business relations.
      - — Carry out an occasional transaction or a wire transfer above the specified threshold.
      - — Have a suspicion of money laundering or terrorist financing.
      - — Have doubts about the veracity or adequacy of previously obtained customer identification information.
    - - verify that customer’s identity using independent source
      - identity of the beneficial owner
      - obtain information on the purpose and nature of the business
      - Conduct ongoing due diligence on the business relationship
      - Conduct ongoing due diligence
      - Rely on other parties to conduct customer due diligence in certain circumstances
    - - Politically Exposed Persons (PEPs)
      - Cross-Border Correspondent Banking:obtain management approval of such relationships;
      - Money or Value Transfer Services (MVTS):ensure that MVTS are licensed
      - New Technologies: should assess these risks prior to launching new products
      - Wire Transfers: financial institutions should obtain and send required and accurate originator, intermediary and beneficiary information with wires. financial institutions should also monitor wires for those involving parties designated by the United Nations Security
    - - Casinos when customers engage in financial transactions equal to or above a designated threshold.
      - Real estate agents when they are involved in transactions for clients concerning buying and selling properties.
      - Dealers in precious metals and stones when they engage in any cash transaction with a customer at or above a designated threshold.
      - Lawyers, notaries and independent legal professionals and accountants when they prepare or carry out transactions for clients
      - Trust and company service providers when they prepare or carry out transactions for a client concerning certain activities (e.g., when acting as a formation agent of legal persons, acting as a director or secretary of a company, acting as a trustee of an express trust or acting as a nominee shareholder for another person).
    - - applying a risk-based approach to all AML/CFT efforts.
      - targeted financial sanctions related to the proliferation of weapons of mass destruction.
      - More attention on domestic politically exposed persons (PEPs)
      - New requirement for the identification and assessment of risks of new products
      - New requirement for financial groups to implement group-wide AML/CFT programs and have procedures for sharing information within the group.
      - Inclusion of tax crimes within the scope of designated categories of offenses for money laundering.