THE FATF RECOMMENDATIONS
INTERNATIONAL STANDARDS ON COMBATING MONEY LAUNDERING AND THE FINANCING OF TERRORISM & PROLIFERATION
8 © 2012-2023
Following the conclusion of the third round of mutual evaluations of its members, the FATF has
reviewed and updated the FATF Recommendations, in close co-operation with the FATF-Style
Regional Bodies (FSRBs) and the observer organisations, including the International Monetary Fund,
the World Bank and the United Nations. The revisions address new and emerging threats, clarify and
strengthen many of the existing obligations, while maintaining the necessary stability and rigour in
the Recommendations.
The FATF Standards have also been revised to strengthen the requirements for higher risk situations,
and to allow countries to take a more focused approach in areas where high risks remain or
implementation could be enhanced. Countries should first identify, assess and understand the risks
of money laundering and terrorist finance that they face, and then adopt appropriate measures to
mitigate the risk. The risk-based approach allows countries, within the framework of the FATF
requirements, to adopt a more flexible set of measures, in order to target their resources more
effectively and apply preventive measures that are commensurate to the nature of risks, in order to
focus their efforts in the most effective way.
Combating terrorist financing is a very significant challenge. An effective AML/CFT system, in general,
is important for addressing terrorist financing, and most measures previously focused on terrorist
financing are now integrated throughout the Recommendations, therefore obviating the need for the
Special Recommendations. However, there are some Recommendations that are unique to terrorist
financing, which are set out in Section C of the FATF Recommendations. These are: Recommendation
5 (the criminalisation of terrorist financing); Recommendation 6 (targeted financial sanctions related
to terrorism & terrorist financing); and Recommendation 8 (measures to prevent the misuse of non-
profit organisations). The proliferation of weapons of mass destruction is also a significant security
concern, and in 2008 the FATF’s mandate was expanded to include dealing with the financing of
proliferation of weapons of mass destruction. To combat this threat, the FATF has adopted a new
Recommendation (Recommendation 7) aimed at ensuring consistent and effective implementation of
targeted financial sanctions when these are called for by the UN Security Council.
The FATF Standards comprise the Recommendations themselves and their Interpretive Notes,
together with the applicable definitions in the Glossary. The measures set out in the FATF Standards
should be implemented by all members of the FATF and the FSRBs, and their implementation is
assessed rigorously through Mutual Evaluation processes, and through the assessment processes of
the International Monetary Fund and the World Bank – on the basis of the FATF’s common assessment
methodology. Some Interpretive Notes and definitions in the glossary include examples which
illustrate how the requirements could be applied. These examples are not mandatory elements of the
FATF Standards, and are included for guidance only. The examples are not intended to be
comprehensive, and although they are considered to be helpful indicators, they may not be relevant
in all circumstances.
The FATF also produces Guidance, Best Practice Papers, and other advice to assist countries with the
implementation of the FATF standards. These other documents are not mandatory for assessing
compliance with the Standards, but countries may find it valuable to have regard to them when
considering how best to implement the FATF Standards. A list of current FATF Guidance and Best
Practice Papers, which are available on the FATF website, is included as an annex to the
Recommendations.