FIAU Notice: New publications from the FATF

6th December 2023 • Notice Board

Please note that the FIAU is informing subject persons of the following publications that the FATF has recently issued:

1. Amendments to Recommendation 8 and its Interpretive Note

In June 2023, the FATF proposed revisions to Recommendation 8 and the accompanying Interpretative Note. The revision aimed to address the problem of over-application of preventive measures to the Non-Profit Organisations (NPOs) sector in some countries, recognising its negative impact on legitimate NPO activities.

It should be noted that Recommendation 8 does not apply to the entire sector of not-for-profit of organisations, but only to those that fall within the FATF definition of NPOs.

The updated FATF Recommendations may be accessed directly through the FATF website, or through the FIAU website by accessing the following link.

2. Best Practices Paper on Combating the Abuse of Non-Profit Organisations 
The FATF has updated this Guidance/Best Practices Paper to incorporate the changes to Recommendation 8. The purpose of this updated publication is to assist countries, the non-profit sector, and financial institutions in comprehending the best approach to safeguard relevant NPOs from terrorist financing abuse, without disproportionately impeding or discouraging legitimate NPO activities.

3. Report on Illicit Financial Flows from Cyber-enabled Fraud
This report examines the transformation of the cyber-enabled fraud landscape, its connections to other criminal activities, and the potential exploitation of vulnerabilities in emerging technologies. Collaborating with the Egmont Group and INTERPOL, the FATF analyzes national operational approaches and successful strategies in addressing cyber-enabled fraud. The report also examines the illicit financing arising from fraud conducted in the cyber environment and highlights the importance of dismantling barriers, fostering collaboration across different sectors, and promoting cooperation at both domestic and international levels.

4. Report on the Misuse of Citizenship and Residency by Investment Programmes
In collaboration with the Organisation for Economic Co-operation and Development (OECD), this report delves into the money laundering and financial crime vulnerabilities associated with Citizenship and Residency by Investment (CBI/RBI) programs. The report highlights how CBI programs can provide criminals with increased global mobility and a means to conceal their identity and illicit activities by utilizing shell companies in different jurisdictions. Moreover, the report emphasizes that the heightened risks of money laundering and financial crime within these investment migration programs extend not only to the applicants, but also to the professional enablers and intermediaries involved in the provision of the service.

These Reports and the best practices paper can be accessed directly through the FATF website, or through the FIAU website by accessing the following link.