FATF Annual Report 1995-1996

The seventh round of the Financial Action Task Force (FATF) was chaired by the United States.

A major task conducted in 1995-1996 by the FATF was the review of its 1990 forty Recommendations. Several substantial changes were agreed by FATF members. First, it was decided to extend money laundering predicate offences beyond narcotics trafficking. Second, it was agreed to make mandatory the reporting of suspicious transactions and to expand the financial Recommendations to cover non-financial businesses. Other changes covered the issues of shell corporations, the refinement of identification requirements including new technology developments, cross-border currency monitoring, controlled delivery techniques and bureaux de change. 

Another major initiative of FATF-VII was the Forum with the financial services industry. The meeting was the first major discussion between the Task Force and representatives of the financial services industry concerning the problems being faced in the combat of money laundering. The topics discussed were important and the exchange of views was most productive. This Forum was only the commencement of a continuing dialogue.

A considerable part of FATF’s work continued to focus on monitoring the implementation, by its members, of the forty Recommendations. The urgency for all member governments to reach a satisfactory standard of compliance with the forty Recommendations was emphasised and a set of measures were drawn up to assist in achieving this. The performance of members has generally improved because significant progress has been made by several members since the previous Annual Report with regard to the implementation of a substantial number of Recommendations. 

The Task Force defined the scope and procedure for its second round of mutual evaluations which will focus on the effectiveness of the anti-money laundering laws and systems in place. Accordingly, two mutual evaluations were conducted during FATF-VII -- France and Sweden.

FATF Annual Report 1995-1996