FATF Proposes Major Changes to Its 40 Anti-Money Laundering Recommendations

On May 30, 2002, the Financial Action Task Force on Anti-Money Laundering (FATF) issued a Consultant Paper proposing major revisions and extensions of the forty recommendations. In an effort to develop more democratic and transparent processes, FATF has requested the views of all interested parties, including non-FATF member, the private sector, or any other interested persons. Comments are requested by August 31, 2002 (if possible electronically and preferably in English or French). FATA has undertaken the review because of changes in money laundering methods and technologies and new international legal standards, including the U.N. Convention on Transnational Organized Crime, the amendments in Directive 2001/97 EC of the European Parliament and Council amending the 1991 directive on money laundering, and the creation of the FATF Special Recommendations on Terrorist Financing. To prepare the paper, the FATF established three working groups: one to consider suspicious transaction reporting and high risk products, a second on the misuse of corporate vehicles, and a third on the role of non-financial businesses and professionals.