Which of the below statements are supported by the Financial Action Task Force (FATF) 40 Recommendations adopted in 2012? (Select Two.)

The correct answer is B. Nations should work towards implementing targeted financial sanctions in alignment with the UN C. Nations should establish frameworks that take a risk-based approach to prevent and mitigate E. Nations should take measures to ensure there is transparency to the beneficial ownership of legal. The FATF 40 Recommendations outline global AML/CFT standards, including risk-based compliance and beneficial ownership transparency. Option B (Correct): FATF requires nations to implement financial sanctions in coordination with the UN Security Council. Option C (Correct): FATF…

Compliance Standards (International AML/CFT Standards and the role of FATF)

Question

Options

ARegulators should direct Financial Institutions to establish appropriate frameworks to avoid
BNations should work towards implementing targeted financial sanctions in alignment with the UN
CNations should establish frameworks that take a risk-based approach to prevent and mitigate
DGovernments must work toward developing identical administrative and operational frameworks
ENations should take measures to ensure there is transparency to the beneficial ownership of legal

How the community answered

(63 responses)

A
13% (8)
B
79% (50)
D
8% (5)

Explanation

The FATF 40 Recommendations outline global AML/CFT standards, including risk-based compliance and beneficial ownership transparency. Option B (Correct): FATF requires nations to implement financial sanctions in coordination with the UN Security Council. Option C (Correct): FATF emphasizes a risk-based approach (RBA) to prevent ML/TF. Option E (Correct): FATF mandates transparency in beneficial ownership to prevent shell

Topics

#FATF 40 Recommendations#risk-based approach#beneficial ownership#targeted financial sanctions

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