Financial Crime World

FATF Updates Recommendations to Combat Proliferation Financing

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The Financial Action Task Force (FATF) has revised its recommendations to combat money laundering and terrorist financing, with a focus on preventing the misuse of financial systems by entities involved in illegal activities. The updated guidelines include new measures to combat foreign terrorist fighters, non-profit organizations, and targeted financial sanctions related to proliferation.

Background

In February 2012, the FATF issued an update to its recommendations aimed at strengthening global efforts against weapons of mass destruction proliferation. The revisions include new guidance papers on a range of topics, including:

  • Combating abuse of non-profit organizations
  • Transparency and beneficial ownership
  • Risk-based approaches to anti-money laundering (AML) and combating the financing of terrorism (CFT)

Barbados’ Efforts to Combat Proliferation Financing

The Government of Barbados has enacted several pieces of legislation aimed at preventing and detecting drug trafficking, money laundering, terrorist financing, and other serious crimes. These laws include:

  • The Proceeds and Instrumentalities of Crime Act, 2019
  • The Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23
  • The Anti-Terrorism Act CAP 158

The Financial Services Commission has also issued guidelines for financial institutions on AML/CFT/PF, including risk-based approaches to combating money laundering and terrorist financing. Additionally, the commission has published guidance papers on:

  • Prepaid card services
  • Mobile payments
  • Internet-based payment services

Key Takeaways

  • The FATF’s revised recommendations focus on preventing the misuse of financial systems by entities involved in illegal activities.
  • New measures have been introduced to combat foreign terrorist fighters, non-profit organizations, and targeted financial sanctions related to proliferation.
  • Barbados has enacted laws aimed at preventing and detecting drug trafficking, money laundering, terrorist financing, and other serious crimes.
  • Financial institutions are advised to stay up-to-date with international standards and refine their programs accordingly.

Conclusion

The fight against weapons of mass destruction proliferation requires a coordinated effort from governments, financial institutions, and regulatory bodies. The FATF’s revised recommendations provide a framework for countries to implement effective measures to prevent the misuse of financial systems by entities involved in illegal activities. Barbados’ efforts to combat proliferation financing demonstrate its commitment to preventing and detecting serious crimes and ensuring the integrity of its financial system.