The Financial Action Task Force on money laundering ("FATF") adopted revisions to the international standards on combating money laundering and financing of terrorism. With these revised international standards the FATF aims to enhance the fight against abuse of the global financial sector.
Some key revisions are:
- More stringent requirements apply when dealing with politically exposed persons ("PEPs") in the fight against corruption. In the Netherlands, national PEPs will also be subject to international standards. This means that Dutch institutions will have to verify if a (potential) client is a Dutch PEP and, if so, observe more caution.
- New standards have been introduced to combat financing of proliferation of weapons of mass destruction. As part of the revision of the FATF standard, these standards have been given a "limited" place. See also the best practices paper published by the FATF on this subject.
- Higher standards for financial investigation and the enforcement tools of investigations services.
- Tax offences must be recognised worldwide as money laundering predicate offences.
- An enhanced risk-based approach for the institutions as well as the supervisors. Existing obligations of supervised institutions will increase.
- More international cooperation to combat the abuse of the international financial sector.
- Stricter transparency requirements for legal entities. Concrete standards are set with regard to availability of up-to-date and reliable information about legal entities.
- Stricter requirements for transparency of several forms of cross-border payment flows.
The revisions came into force on 16 February 2012. Most likely, the standards will be implemented in the revised Anti-Money Laundering Directive, prior to the implementation in Dutch law.