Financial Crime World

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FATF Recommendations Implemented in Svalbard and Jan Mayen

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In a significant development, the Financial Action Task Force (FATF) has implemented several recommendations aimed at strengthening anti-money laundering (AML) and combating the financing of terrorism (CFT) measures in Svalbard and Jan Mayen. The latest updates were announced following the FATF’s plenary meetings held throughout 2013 to 2023.

Key Amendments

  • The FATF has made significant changes to its recommendations, including revisions to Recommendation 1, which requires countries to identify and assess the risks of potential breaches, non-implementation or evasion of targeted financial sanctions related to proliferation financing.
  • Recommendation 2 has been revised to ensure compatibility with data protection and privacy rules.
  • The agency has also updated its standards on non-profit organisations (NPOs) by revising Recommendation 8 and Interpretive Note 8. This move aims to strengthen the implementation of focused, targeted and risk-based measures on NPOs.

Virtual Assets

  • The FATF has also made important changes regarding virtual assets, with revisions to Recommendation 15 and the addition of two new definitions in the Glossary - “virtual asset” and “virtual asset service provider”.
  • Interpretive Note 15 sets out the application of the FATF Standards to virtual asset activities and service providers.

Environmental Crime

  • The FATF has revised its Glossary definition of ‘designated categories of offences’ to clarify the types of offences which fall within the ’environmental crime’ category.
  • This move aims to strengthen international cooperation in combating environmental crimes.

Beneficial Ownership

  • The agency has also strengthened its standards on beneficial ownership by revising Recommendation 24 and adding two new definitions - “nominator” and “nominee shareholder or director”.
  • Additionally, Recommendation 25 has been revised to strengthen the standards on beneficial ownership of legal arrangements.

Asset Recovery

  • In another significant move, the FATF has revised its asset recovery Standards and Glossary definitions related to asset recovery.
  • This aims to improve international cooperation in recovering assets linked to terrorist financing and other serious crimes.

The implementation of these recommendations is expected to enhance Svalbard and Jan Mayen’s AML/CFT framework, thereby strengthening the fight against financial crime and terrorism.