Review of the FATF Standards

The Financial Action Task Force (FATF) develops and promotes global standards for combating money laundering and terrorist financing, which are set out in the FATF 40 Recommendations and the 9 Special Recommendations on Terrorist Financing. Now at the end of its 3rd Round of Mutual Evaluations, the FATF is conducting a review of the 40+9 Recommendations to ensure that they remain up-to-date and relevant and to benefit from lessons learned from implementing and evaluating the current standards. The current review is a focused and balanced exercise, aiming at maintaining the necessary stability in the standards while addressing any deficiencies or loopholes.

Between October 2010 and January 2011, the FATF undertook a public consultation on the first phase of its Review of the FATF Standards.  The responses received were published on the FATF website in February 2011. In summary, 51 written submissions were received from representatives of the financial sector (available as Part 1 and Part 2); 18 from representatives of the non-financial businesses and professions; and 6 from other respondents, including non-governmental organisations.

The FATF has begun to consider the issues raised during the initial consultation. In particular, it continues to review certain aspects of the proposals relating to the risk-based approach, customer due diligence, wire transfers and politically exposed persons, taking into account comments received during the consultation process.

Royalty fraud

Certain industries are more susceptible to royalty fraud, but investigating and proving it is a challenging process. Whether a client wants to call it a fraud investigation or just a review, the key to this kind of assignment is to know how payments are supposed to be recorded and every possible trick or mistake that can result in underpayments. In other words, give every file the royal treatment. Read the article “Royal Treatment” in CAmagazine online.