FATF

The FATF is a complex multilateral body based in Paris, which deals with the prevention of money laundering and terrorist financing.

Parliamentary Tribute to Prof. Kader Asmal by Trevor Manuel, Minister of Finance 2008

But U.S. banks are pushing back against a proposal by the FATF that would require financial institutions to identify the person who ultimately benefits from an account.

U.S. Banks Oppose Tighter Money Rules Deborah Ball 2011

Chief among them: the U.N. Convention against Corruption, the U.N. Convention Against Transnational Organized Crime, and the Financial Action Task Force FATF on Money Laundering, an intergovernmental organization that develops policies to combat illegal cash flows.

Corbin Hiar: Stolen State Money: Trillions Lost Annually, Only Billions Have Been Recovered Corbin Hiar 2011

Chief among them: the U.N. Convention against Corruption, the U.N. Convention Against Transnational Organized Crime, and the Financial Action Task Force FATF on Money Laundering, an intergovernmental organization that develops policies to combat illegal cash flows.

Corbin Hiar: Stolen State Money: Trillions Lost Annually, Only Billions Have Been Recovered Corbin Hiar 2011

The compliance rate for one important FATF recommendation is troublingly low, as the U.N. Office on Drugs and Crime pointed out in a 2009 report for the StAR Initiative.

Corbin Hiar: Stolen State Money: Trillions Lost Annually, Only Billions Have Been Recovered Corbin Hiar 2011

A 2006 FATF peer review found the U.S. system lacking, saying "there are no measures in place to ensure that there is adequate, accurate and timely information" on who ultimately owns and controls an account.

U.S. Banks Oppose Tighter Money Rules Deborah Ball 2011

FATF officials also are discussing whether to require countries to supply to banks lists of senior and middle-level politicians to make it easier for the banks to keep track of those who should be treated as high-risk.

U.S. Banks Oppose Tighter Money Rules Deborah Ball 2011

In an effort to plug gaps, the FATF has proposed that domestic officials be treated as high-risk for the first time.

U.S. Banks Oppose Tighter Money Rules Deborah Ball 2011

FATF standards now require financial institutions to treat as high-risk the accounts of so-called politically exposed persons, or PEPs, such as public officials and diplomats, and those close to them.

U.S. Banks Oppose Tighter Money Rules Deborah Ball 2011

The International Banking Federation is resisting changes by the FATF.

U.S. Banks Oppose Tighter Money Rules Deborah Ball 2011