FCC RegUpdate

On 16 November 2023, the Financial Action Task Force (FATF), the international financial crime watchdog, issued amendments to strengthen global asset recovery standards.

To know more, read here https://www.fcctimes.com/2023/11/16/fatf-unveils-bold-revisions-to-combat-cross-border-crime-new-standards-strengthen-asset-recovery-globally/?utm_source=RZOLUTWebsite&utm_medium=FCCRegUpdate17Nov

The FATF leads global efforts by providing 40 Recommendations, accompanied by interpretative notes, that establish international standards for combating money laundering and terrorist financing.

FATF has updated asset recovery standards and glossary definitions to enhance domestic confiscation and freeze measures. These modifications aim to improve international cooperation on asset recovery and enhance law enforcement’s ability to identify and trace criminal property, involving Recommendations 4, 30, 31, 38, and Interpretive Note 40.

Key changes include:

  • The FATF now requires countries to prioritize asset recovery, review confiscation policies, and coordinate internal information to identify criminal property.
  • Mandates the establishment of non-conviction-based confiscation regimes to combat corruption, safeguard innocent property rights, and uphold consistent domestic law principles.
  • Extended confiscation, which targets assets beyond criminals’ legal income, significantly aids in combating organized crime while aligning with domestic law principles.
  • Enhancing tools for temporarily freezing, seizing, and restraining suspected criminal property, as well as suspending or withholding consent to transactions.
  • The FATF Recommendations emphasize the importance of effective communication and informal cooperation among countries for asset recovery, fostering smoother cooperation through mutual legal assistance treaties and active support of multilateral networks.