FATF, the global standard-setter in the fight against money laundering and terrorist financing estimate the cost of money laundering and underlying serious crime is between 2% and 5% of global GDP. FATF has recently revised its recommendations on combating Money Laundering and Terrorism Financing enabling national authorities to take more effective action against money laundering and terrorist financing.
The revised FATF 40 Recommendations now fully integrate counter-terrorist financing measures with anti-money laundering controls, introduce new measures to counter the financing of the proliferation of weapons of mass destruction, and will address the laundering of the proceeds of corruption and tax crimes. The FATF 40 Recommendations will also strengthen the requirements for higher risk situations and allow countries to take a more targeted risk-based approach.
The main changes to the Recommendations are:
- Combating the financing of the proliferation of weapons of mass destruction through the consistent implementation of targeted financial sanctions when these are called for by the UN Security Council;
- Improved transparency to make it harder for criminals and terrorists to conceal their identities or hide their assets behind legal persons and arrangements;
- Stronger requirements when dealing with politically exposed persons (PEPs), including domestic PEPs;
- Expanding the scope of money laundering predicate offences by including tax crimes;
- An enhanced risk-based approach which enables countries and the private sector to apply their resources more efficiently by focusing on higher risk areas;
- More effective international cooperation including exchange of information between relevant authorities, conduct of joint investigations, and tracing, freezing and confiscation of illegal assets; and
- Better operational tools and a wider range of techniques and powers, both for the financial intelligence units, and for law enforcement to investigate and prosecute money laundering and terrorist financing.
Implementation of the revised Recommendation
FATF will begin a new round of evaluations on the Recommendations of its member countries in 2013 and will focus much more intensively on assessing how effectively countries have implemented the Standards.
The Regulatory Authority will continue to monitor developments within the State of Qatar and through our engagement with the National Anti-Money Laundering and Terrorist Financing Committee and will review our AML/CFT Rules as required to ensure global standards are maintained.
Further information and resources
The Regulatory Authority’s AML/CFT webpage
provides further information that may assist firms to comply with their ongoing AML/CFT obligations.