Currency Transaction Reporting
, FATF
, FIU
, Fourth EU Directive
, Money Laundering offences
, PEP
, Proliferation
, Risk Based Assessment
, Special Recommendations
So it has arrived – the revised version of the FATF 40 + 9 and what do we see?
I am sure I will not be the only blog or commentary on this issue, and I definitely need to take a more in depth look, but I thought I would share my very initial observations and thoughts:
- The 9 Special Recommendations are no longer special, being incorporated as part of the revised 40.
- "Old” Recommendations re-numbered – lots of documents to be updated.
- An updated list of predicate Money Laundering offences which now includes tax (direct and indirect) and smuggling .
- More flexibility is encouraged through Risk Based Assessment (particularly in low risk areas) to allow the focus to be on high risk issues. (Rec 1).
- A whole new Recommendation on Proliferation (Rec 7) focusing on preventative measures.
- All PEP’s (Domestic and International) now considered high risk as well as their family and close associates (Rec 12).
- A recommendation for Currency Transaction Reporting to be adopted globally (Rec 16)
- Reduced thresholds for wire transfers (at the possible cost of driving the small value terrorist financing transaction to alternative remittance systems) (Rec 16).
- A central and public registry for Trusts to include assets (to quote“land, property, vehicles, shares or other assets” )(Rec 25) – let’s see how this is going to be accepted, let alone work.
- FIU’s are encouraged to process information more efficiently but not, thank heavens, at the expense of human judgement (Rec 29). (Looking forward to see how this recommendation fits in firms too, particularly once we see the outcome of the Shah case, perhaps shortly looking at todays reports).
With a total of 125 pages in the new 40 I should be through them by the time the 4th EU Directive undoubtedly comes at the same time, or there abouts, as an update from the regulators and guidance producers.
Clearly I will not be short of some reading material over the next few weeks. Implementing policy reviews and procedure re-writes may take a little longer, let alone implementing by 2013 when FATF state the next round of evaluations will commence.
So what are your views?
