Terrorist financing methods have changed since standards were last revised in 2003

Friday, November 26, 2010

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=55938&cat=8&IdSection=8&PageMem=&nbNews=&IdPub=

The Department of Finance is seeking public comments on proposals to update and enhance international anti-money laundering rules.

The Financial Action Task Force – the international body responsible for setting anti-money laundering and anti-terrorist financing standards – recently published a consultation paper entitled ‘the Review of the Standards - Preparation for the 4th Round of Mutual Evaluations’.

The paper proposes options to update and enhance the standards, which have been endorsed by more than 180 countries and are widely accepted as the leading international anti-money laundering and anti-terrorist financing standards. However, since they were last revised in 2003, money laundering and terrorist financing methods have changed and new technologies have been developed.

The consultation paper presents proposals coming out of the first phase of this review over the last year, including the risk-based approach, customer due diligence, reliance on third parties and tax crime as a predicate offence for money laundering.