approach: countries and financial institutions should understand the
risks they face, and take measures against those risks. This allows
limited resources to be targeted.
categories of offenses: where the money derived from the specific
offense is concealed in the financial system, this would constitute
criminal money laundering. Countries should also confiscate the
proceeds of crime.
financing and proliferation: countries should criminalize terrorist
financing, freeze the assets of any entity that is identified by the
UN Security Council as involved in terrorism. Also control against
the use of non-profits for terrorist support.
criminal liability: willful blindness (deliberate avoidance of
knowledge of the facts) should not shield an entity from money
laundering offences. Civil, or if possible, criminal offenses
should apply to legal entitles .
diligence: should occur when business relations are started, when
occasional transactions occur above a specified threshold,
suspicions of money laundering or terrorist financing arise, doubts
about previous customer identification exist.
on a risk basis,
identify customers and verify their identity using independent
beneficial owner and verify their identity.
nature of the business relationship.
transactions and ensure they match the knowledge of the customer.
Heighted CDD on:
verifying source of funds.
correspondent banking, understanding the respondent’s business and
customers, levels of AML controls, mitigate risks of payable through
Money or value
transfer services (MVTS) should be licensed and be subject to AML
should be risk assessed, especially new products, delivery
mechanisms and business practices. Risks should be mitigated.
Wire transfers –
accurate originator, intermediary and beneficiary information, and
monitor for missing data, also sanctions screen the data.
transaction reporting: institutions must report to the FIU any
of industries: casinos, real estate agents, dealers in precious
metals and stones, lawyers, notaries, accountants, legal
professionals (when they manage client money or other assets, buy or
sell real estate, create or manage companies), trust and company
service providers (when they act as formation agents, act as a
director or secretary, act as a trustee or nominee shareholder for
institutions for occasional customers: €15,000
precious metals and stones, when dealing in cash €15,000
beneficial ownership of legal persons: particularly those that issue
responsibilities of authorities: ensure FATF recommendations are
being implemented in financial institutions, and are not owned or
controlled by criminals
co-operation and mutual assistance