|
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 38
|
|
D. INTERNATIONAL CO-OPERATION
Mutual legal assistance and extradition
There should be authority to take expeditious action in response to requests by foreign countries to identify, freeze, seize and confiscate property laundered, proceeds from money laundering or predicate offences, instrumentalities used in or intended for use in the commission of these offences, or property of corresponding value. There should also be arrangements for co-ordinating seizure and confiscation proceedings, which may include the sharing of confiscated assets.
|
|
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 38
Countries should consider:
| a) |
Establishing an asset forfeiture fund in its respective country into which all or a portion of confiscated property will be deposited for law enforcement, health, education, or other appropriate purposes.
|
| b) |
Taking such measures as may be necessary to enable it to share among or between other countries confiscated property, in particular, when confiscation is directly or indirectly a result of co-ordinated law enforcement actions.
|
|
