The FATF 40 Recommendations are the international standards on combating money laundering, terrorist financing, and proliferation financing issued by the Financial Action Task Force. They define a comprehensive framework covering customer due diligence, beneficial-ownership transparency, suspicious-transaction reporting, supervision, and international cooperation. National regimes implement them to achieve compliance assessed through FATF mutual evaluations.
Content
- The Recommendations mandate a risk-based approach, requiring obliged entities to identify and verify customers, monitor transactions, and report suspicious activity, while states establish supervisory and enforcement institutions. Their extension to virtual assets and service providers has driven crypto-sector KYC, travel-rule, and licensing obligations worldwide.