Money Laundering

In response to mounting concern over money laundering, the Financial Action Task Force on money laundering (FATF) was established by the G-7 Summit in Paris in 1989 to develop a co-ordinated international response. One of the first tasks of the FATF was to develop Recommendations, 40 in all, which set out the measures national governments should take to implement effective anti-money laundering programmes. For more information on Money Laundering, see the Money Laundering FAQ page.

The Forty Recommendations provide a complete set of counter-measures against money laundering covering the criminal justice system and law enforcement, the financial system and its regulation, and international co-operation.

They have been recognised, endorsed, or adopted by many international bodies and by more than 180 countries around the world. The Recommendations are neither complex nor difficult, nor do they compromise the freedom to engage in legitimate transactions or threaten economic development. They set out the principles for action and allow countries a measure of flexibility in implementing these principles according to their particular circumstances and constitutional frameworks. Many countries around the world have not only made the political commitment to combat money laundering, but have taken significant action to implement the Forty Recommendations.
Initially developed in 1990, the Recommendations were revised in 1996 and then again in 2003, to take into account changes in money laundering techniques and trends and to anticipate future threats, as well as to take into account country’s experience in implementing the FATF Standards. The FATF has also elaborated various Interpretative Notes which are designed to clarify the application of specific Recommendations and to provide additional guidance.  Recently, the FATF has begun a review of the FATF Recommendations to ensure that they remain up-to date and relevant – see Consultation Paper.