During the first quarter of 2023, the Financial Action Task Force (“FATF”) published new documents aimed at assisting countries and subject persons. Here are some highlights of the guidance provided in these documents:
- Guidance on Beneficial Ownership for Legal Persons
The Guidance on Beneficial Ownership for Legal Persons document aims to help countries and individuals prevent the misuse of legal entities by providing them with information on how to identify, design and implement appropriate measures. It follows the revised version of FATF Recommendation 24, which concerns transparency and beneficial ownership of legal entities and recommends a multi-pronged approach for collecting beneficial ownership information, ensuring accurate and up-to-date information is made available to competent authorities quickly.
Furthermore, the document provides detailed information on various aspects of beneficial ownership, such as defining beneficial ownership, establishing a legal framework, sharing information, and preventing the misuse of bearer shares and nominee arrangements.
- Report on Money Laundering and Terrorist Financing in the Art and Antiquities Market
The Report on Money Laundering and Terrorist Financing in the Art and Antiquities Market, provides valuable insight to help the private sector identify vulnerabilities and risks exploited by criminals.
In particular, the unique nature of cultural objects and the use of cash, intermediaries, legal persons, and arrangements make the art and antiquities market an ideal channel for money laundering and financing illegal activities. Terrorist financing can occur through trafficking and trading of cultural objects by excavating, looting, and smuggling antiquities.
The report provides investigative strategies and good practices to help detect and investigate ML/FT linked to cultural artifacts and includes a list of risk indicators to identify suspicious activities. It also highlights the importance of reporting suspicious transactions, providing training and outreach, and sharing information across the public and private sectors.
- Report on Countering Ransomware Financing
The Report on Countering Ransomware Financing discusses how ransomware payments are made and laundered, and suggests good practices to help countries fight this crime more effectively. It emphasizes the application of a risk-based approach and encourages financial institutions and Virtual Asset Service Providers (“VASPs”) to enhance their customer due diligence procedures and report suspicious activities.
The report also explores the role of cryptocurrencies in ransomware financing and offers guidance to VASPs on how to address the risks associated with virtual assets.
The report is complemented by the "Countering Ransomware Financing: Potential Risk Indicators" report, which focuses on identifying suspicious activities related to ransomware for public and private sector entities.
