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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.
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Recommendation 2
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A. LEGAL SYSTEMS
Scope of the criminal offence of money laundering
Countries should ensure that:
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a)
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The intent and knowledge required to prove the offence of money laundering is consistent with the standards set forth in the Vienna and Palermo Conventions, including the concept that such mental state may be inferred from objective factual circumstances.
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b)
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Criminal liability, and, where that is not possible, civil or administrative liability, should apply to legal persons. This should not preclude parallel criminal, civil or administrative proceedings with respect to legal persons in countries in which such forms of liability are available. Legal persons should be subject to effective, proportionate and dissuasive sanctions. Such measures should be without prejudice to the criminal liability of individuals.
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Also covering Scope of the criminal offence of Money laundering: Recommendation 1.
General
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1.
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Reference in this document to “countries” should be taken to apply equally to “territories” or “jurisdictions”.
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2.
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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.
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3.
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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.
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4.
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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.
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5.
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The Interpretative Notes that apply to financial institutions are also relevant to designated non-financial businesses and professions, where applicable.
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