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FATF recommendations are like international rules or guidelines that countries around the world should follow to prevent criminals and terrorists from using the financial system for illegal activities. These recommendations tell countries what they should do to stop money laundering (making dirty money look clean) and terrorist financing (giving money to terrorists).

FATF recommends these rules to protect the global financial system from being used by bad people for illegal activities. Criminals and terrorists often try to hide their money or move it across borders secretly. FATF wants to make sure that countries have strong measures in place to detect and stop these activities.

FATF recommends it to all the countries in the world. It wants every country to have good rules and systems to prevent money laundering and terrorist financing. Governments, banks, and other organizations in each country need to follow these recommendations to keep the financial system safe and secure for everyone.

Recommendation NumberRecommendation TitleSummary of RecommendationYear of Recommendation
Recommendation 1Legal systemsAssess and mitigate money laundering and terrorist financing risks.1990
Recommendation 2Money laundering and confiscationCriminalize money laundering and enable confiscation.1990
Recommendation 3Terrorist financing offenses and powersCriminalize terrorist financing and grant powers to law enforcement.2001
Recommendation 4Targeted financial sanctions related to proliferationImplement targeted financial sanctions against proliferation.2001
Recommendation 5Powers of competent authorities and other institutional measuresGrant authorities to combat money laundering and terrorist financing.1990
Recommendation 6Reporting of suspicious transactionsRequire reporting of suspicious activities to FIUs.1990
Recommendation 7Internal controls, compliance, and the role of supervisorsEstablish internal controls and compliance programs.1990
Recommendation 8Customer due diligence (CDD) and record-keepingConduct customer due diligence and maintain records.2003
Recommendation 9Enhanced due diligence for higher-risk situationsApply enhanced due diligence for high-risk customers.2003
Recommendation 10Simplified due diligenceAllow simplified due diligence for low-risk customers.2003
Recommendation 11New technologies and reporting of suspicious transactionsAddress risks related to new payment methods and technologies.2004
Recommendation 12Politically exposed persons (PEPs)Identify and manage risks associated with PEPs.2003
Recommendation 13Correspondent banking and wire transfersEnsure due diligence on correspondent banking and wire transfers.2003
Recommendation 14Money or value transfer servicesRegulate and supervise money or value transfer services.2003
Recommendation 15New technologiesAddress risks associated with new technologies.2012
Recommendation 16Wire transfersEnsure the traceability of wire transfers.2004
Recommendation 17Reliance on third partiesSupervise and ensure AML/CFT compliance by third parties.2012
Recommendation 18Internal controls for banksEstablish and maintain internal controls in banks.2004
Recommendation 19Higher-risk countriesImplement measures for higher-risk countries.2004
Recommendation 20Reporting of suspicious transactions and complianceEnsure reporting and compliance with recommendations.2012
Recommendation 21Tipping-off and confidentialityProhibit tipping-off and maintain confidentiality.2004
Recommendation 22DNFBPs: Customer due diligenceApply customer due diligence for DNFBPs.2008
Recommendation 23DNFBPs: Other measuresImplement other measures for DNFBPs.2008
Recommendation 24Transparency and beneficial ownership of legal personsEnsure transparency of legal persons’ beneficial ownership.2012
Recommendation 25Transparency and beneficial ownership of legal arrangementsEnsure transparency of legal arrangements’ beneficial ownership.2012
Recommendation 26Regulation and supervision of financial institutionsRegulate and supervise financial institutions effectively.2004
Recommendation 27Powers of supervisorsGrant powers to supervisors for AML/CFT compliance.2004
Recommendation 28Regulation and supervision of DNFBPsRegulate and supervise DNFBPs effectively.2004
Recommendation 29Financial intelligence units (FIUs)Establish and maintain FIUs for AML/CFT purposes.2004
Recommendation 30Responsibilities of law enforcement and investigative authoritiesEnsure law enforcement and investigative authorities’ effectiveness.2005
Recommendation 31Powers of law enforcement and investigative authoritiesGrant powers to law enforcement and investigative authorities.2005
Recommendation 32Cash couriersRegulate and supervise cross-border cash movements.2004
Recommendation 33StatisticsCollect, analyze, and disseminate AML/CFT statistics.2004
Recommendation 34Guidance and feedbackProvide guidance and feedback to reporting entities.2004
Recommendation 35SanctionsImplement effective, proportionate, and dissuasive sanctions.2004
Recommendation 36International instrumentsRatify and implement relevant international instruments.2004
Recommendation 37Mutual evaluations, follow-up, and reportingUndergo mutual evaluations and follow-up processes.2004
Recommendation 38Mutual evaluations: confidentialityMaintain confidentiality of mutual evaluation reports.2004
Recommendation 39Other forms of evaluationConsider other forms of evaluation to assess compliance.2004
Recommendation 40Recommendations and interpretive notesComply with recommendations and interpretive notes.2004
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