FATF has updated its recommendations

20.02.2012

15 February 2012 the members of the organization FATF (Financial Action Task Force on Money Laundering) have been revised recommendations on combating money laundering and terrorism financing. Today these recommendations are used by more than 180 countries around the world. The draft of amendments has been developed by states over the past two years.

Let’s recall that the FATF is an interstate agency whose goal is development and promotion both at the national and international level strategies to combat money laundering and financing of terrorism organizations.

The application of modified FATF recommendations will enable states to identify and prosecute the crimes starting with the customer that opens an account identification process till confiscation of property more effectively.

The FATF president Giancarlo Del Bufalo commented on adopted amendments in the following way:

"Adoption of the revised Recommendations demonstrates countries’ shared commitment to fight money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction. The revised Recommendations include requirements for stronger safeguards in the financial sector, strengthened law enforcement tools  and improved international cooperation”.

Let’s mention the directions of recommendations changed:

• Increase of transparency to fight with terrorism activities;

• Establishment of more strict requirements when dealing persons involved in political activity;

• International cooperation strengthening through establishment of direct links between financial secret services;

• Tax crimes including in the list of predicate offenses for money laundering.

Expert’s opinion

“Since Russia is a member of FATF since 2003 the standards of this organization are obligatory for implementation by the country. At the current moment the FATF recommended to consider tax evasion as a crime predicating money laundering. Thus Russian banks have to "watch" the fiscal discipline of its customers.

However, for starting the work of such a mechanism it’s necessary to make appropriate changes to Russian law (referring to the Federal Law dated 7  August  2001 N 115-FL "On Combating Legalization (Laundering) of Proceeds from Crime and Financing of Terrorism)."

On the basis: http://www.fatf-gafi.org

Vorontsova Maria ( the lawyer of international consulting department of Honest&Bright)