FATF Recommendations (Financial Action Task Force)

Summary

The FATF 40 Recommendations establish the international standard for anti-money laundering (AML) and counter-terrorist financing (CTF). Recommendation 5 criminalises terrorist financing; Recommendation 6 requires targeted financial sanctions consistent with UNSC Res. 1267/1373. FATF 'grey-listing' and 'black-listing' carry significant economic consequences. Sri Lanka was grey-listed in 2022 (removed 2023).

Relevance to the diaspora

FATF grey-listing of Sri Lanka in 2022 increased due diligence obligations on UK and international banks processing Tamil diaspora remittances to Sri Lanka, creating practical banking barriers for legitimate diaspora financial transfers to families and community organisations.

Key provisions

• Recommendation 1 — risk assessment
• Recommendation 5 — terrorist financing offence
• Recommendation 6 — targeted financial sanctions for terrorism/proliferation
• Recommendation 8 — non-profit organisations (risk-based approach)
• Interpretive Note R.8 — NPO sector not to be treated as inherently suspect

Primary source

Related entries

• → Proceeds of Crime Act 2002 (UK)
• → UN Convention Against Corruption (UNCAC) 2003 (UN)
• → 18 U.S.C. §§ 2339A & 2339B — Material Support to Terrorism (US)