Amendments to the FATF Standards
16 November 2023 – Amendments to the FATF Standards to Strengthen Global Asset Recovery
The changes require countries to prioritise asset recovery, both at a national and international level. At national level, countries are required to periodically review confiscation policies and frameworks, allowing timely identification of criminally obtained property through internal sharing of information. Countries are required to establish a non-conviction-based confiscation regime within their legal system including the implementation of extended confiscation thus preventing criminals access to unexplained wealth. Mechanisms allowing the temporary freezing of assets during early stages of an investigation, need to be put in place. This will also aid countries to counter threats posed by digitalisation and technology used by criminals for dissipation of illicit assets. At international level, countries need to recognise each other’s preliminary and final court orders concerning assets subject to confiscation and overall have a good communication and timely cooperation through mutual legal assistance treaties.
16 November 2023 – amendment to Recommendation 8 (R.8) on to protecting NPOs from terrorist financing (TF) abuse through the risk-based implementation of strengthened measures.
Due to the diverse types of NPOs within this sector and the varying risks faced, countries are required to periodically identify organisations that fall within the FATF definition of NPOs, assess the TF risks posed to them and to have in place focused, proportionate and risk-based measures to address TF risks identified. Countries should be mindful of the potential impact of measures on legitimate NPO activities. Measures in place should not unnecessarily interfere with or discourage the operations of reputable non-profit organisations, but protects the integrity of the NPO sector, the donor community, and the financial institutions and intermediaries they use. Although countries are required to oversee and monitor NPOs, NPOs do not necessarily need to be designated and supervised as reporting entities or be required to conduct customer due diligence.