|
Text of the Recommendation and Interpretative Note
See also: The full text of the 40 Recommendations, glossary and interpretative notes 
 Return to the FATF 40 Recommendations page.
|
Recommendation 25
|
|
B. MEASURES TO BE TAKEN BY FINANCIAL INSTITUTIONS AND NONFINANCIAL BUSINESSES AND PROFESSIONS TO PREVENT MONEY LAUNDERING AND TERRORIST FINANCING
Regulation and Supervision
The competent authorities should establish guidelines, and provide feedback which will assist financial institutions and designated non-financial businesses and professions in applying national measures to combat money laundering and terrorist financing, and in particular, in detecting and reporting suspicious transactions.
|
|
General
|
1.
|
Reference in this document to “countries” should be taken to apply equally to “territories” or “jurisdictions”.
|
|
2.
|
Recommendations 5-16 and 21-22 state that financial institutions or designated non-financial businesses and professions should take certain actions. These references require countries to take measures that will oblige financial institutions or designated non-financial businesses and professions to comply with each Recommendation. The basic obligations under Recommendations 5, 10 and 13 should be set out in law or regulation, while more detailed elements in those Recommendations, as well as obligations under other Recommendations, could be required either by law or regulation or by other enforceable means issued by a competent authority.
|
|
3.
|
Where reference is made to a financial institution being satisfied as to a matter, that institution must be able to justify its assessment to competent authorities.
|
|
4.
|
To comply with Recommendations 12 and 16, countries do not need to issue laws or regulations that relate exclusively to lawyers, notaries, accountants and the other designated non-financial businesses and professions so long as these businesses or professions are included in laws or regulations covering the underlying activities.
|
|
5.
|
The Interpretative Notes that apply to financial institutions are also relevant to designated non-financial businesses and professions, where applicable.
|
Recommendation 25
When considering the feedback that should be provided, countries should have regard to the FATF Best Practice Guidelines on Providing Feedback to Reporting Financial Institutions and Other Persons.
|
