Financial Crime World

Title: FATF’s New Recommendations to Enhance the Fight Against Terrorism Financing

The Financial Action Task Force (FATF) has announced new recommendations to strengthen its efforts in preventing the financing of terrorism. these recommendations aim to Create a robust framework, in conjunction with the FATF Forty Recommendations on money laundering, to:

  • Detect
  • Prevent
  • Suppress

the financing of terrorism and terrorist acts.

Background

According to FATF officials, these new recommendations address evolving threats and vulnerabilities that could be exploited by terrorists to raise and transfer funds:

“These recommendations build on the FATF Forty Recommendations and the 9 Special Recommendations to ensure that jurisdictions are implementing effective measures to prevent all forms of terrorism financing.”

  • FATF President and Secretary General

New Recommendations

The new FATF recommendations will cover the following areas:

1. Enhanced Regulatory Frameworks

  • Apply risk-based approaches to business relationships.

2. Enhanced Customer Due Diligence

  • Improved transparency in the ownership and control of legal persons.

3. Improvements in the Use and Exchange of Financial Intelligence

4. Enhanced Measures for Addressing the Risks of Abuse of Non-Profit Organizations (NPOs) for Terrorism Financing

These new guidelines will be mandatory for all FATF members and jurisdictions under investigation or in the process of being evaluated.

Implementation and Technical Assistance

The FATF is expected to provide guidance and technical assistance to help countries implement the new recommendations effectively.

Sources