Global Effort to Combat Financial Crimes: FATF Recommendations
The Financial Action Task Force (FATF) has issued recommendations for countries to establish permanent or temporary multidisciplinary groups specialized in financial and asset investigations to combat financial crimes.
Combating Financial Crimes through Multidisciplinary Groups
In an effort to track down and prosecute individuals involved in money laundering, terrorist financing, and other financial crimes, FATF recommends that countries establish multidisciplinary groups. These groups will work closely with law enforcement authorities to investigate these crimes within the framework of national anti-money laundering (AML) and combating the financing of terrorism (CFT) policies.
Key Responsibilities
According to FATF Recommendation 30, countries must ensure that designated law enforcement authorities have responsibility for investigating these crimes. Additionally, these authorities must develop pro-active parallel financial investigations when pursuing money laundering and terrorist financing cases.
Financial Intelligence Units (FIUs)
The FATF also recommends that countries establish a FIU to receive and analyze suspicious transaction reports and other information related to money laundering, associated predicate offenses, and terrorist financing. The FIU will be responsible for disseminating the results of its analysis to competent authorities.
International Cooperation
Recommendation 40 emphasizes the importance of international cooperation in combating these crimes. Countries are encouraged to rapidly, constructively, and effectively provide international cooperation in relation to money laundering, associated predicate offenses, and terrorist financing.
Identifying and Seizing Property
The FATF’s recommendations also highlight the need for countries to establish effective mechanisms for identifying, tracing, and initiating actions to freeze and seize property that is subject to confiscation or suspected of being proceeds of crime. This includes cases where the associated predicate offense occurs outside their jurisdictions.
Statement from a Senior Official
“The establishment of multidisciplinary groups specialized in financial and asset investigations will be a crucial step in combating financial crimes,” said a senior official from the FATF. “We urge countries to take immediate action to implement these recommendations and work together to disrupt the financial networks of criminals.”
Key Recommendations
- Establish permanent or temporary multidisciplinary groups specialized in financial and asset investigations.
- Ensure that designated law enforcement authorities have responsibility for investigating money laundering and terrorist financing cases.
- Establish a financial intelligence unit (FIU) to receive and analyze suspicious transaction reports and other information related to money laundering, associated predicate offenses, and terrorist financing.
- Provide international cooperation in relation to money laundering, associated predicate offenses, and terrorist financing.
About the FATF
The Financial Action Task Force (FATF) is an inter-governmental organization that sets standards for combating money laundering, terrorist financing, and other financial crimes. The FATF has 37 member countries and works closely with international organizations to prevent these crimes from occurring.