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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 12
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B. MEASURES TO BE TAKEN BY FINANCIAL INSTITUTIONS AND NONFINANCIAL BUSINESSES AND PROFESSIONS TO PREVENT MONEY LAUNDERING AND TERRORIST FINANCING
Customer due diligence and record-keeping
The customer due diligence and record-keeping requirements set out in Recommendations 5, 6,and 8 to 11 apply to designated non-financial businesses and professions in the following situations:
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a)
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Casinos – when customers engage in financial transactions equal to or above the applicable designated threshold.
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b)
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Real estate agents - when they are involved in transactions for their client concerning the buying and selling of real estate.
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c)
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Dealers in precious metals and dealers in precious stones - when they engage in any cash transaction with a customer equal to or above the applicable designated threshold.
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d)
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Lawyers, notaries, other independent legal professionals and accountants when they prepare for or carry out transactions for their client concerning the following activities:
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- buying and selling of real estate;
- managing of client money, securities or other assets;
- management of bank, savings or securities accounts;
- organisation of contributions for the creation, operation or management of companies;
- creation, operation or management of legal persons or arrangements, and buying and selling of business entities.
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e)
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Trust and company service providers when they prepare for or carry out transactions for a client concerning the activities listed in the definition in the Glossary.
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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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Recommendations 5, 12 and 16
The designated thresholds for transactions (under Recommendations 5 and 12) are as follows:
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Financial institutions (for occasional customers under Recommendation 5) - USD/EUR 15,000.
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Casinos, including internet casinos (under Recommendation 12) - USD/EUR 3000
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For dealers in precious metals and dealers in precious stones when engaged in any cash transaction (under Recommendations 12 and 16) - USD/EUR 15,000.
Financial transactions above a designated threshold include situations where the transaction is carried out in a single operation or in several operations that appear to be linked.
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