Features of legal nature Financial Action Task Force on Money Laundering FATF

Keywords: dirty money, blacklist, recommendations, money laundering, terrorist financing, universal international standards, anti-dirty money laundering

Abstract

The article is devoted to the peculiarities of the legal nature of FATF, the process of its creation, the legal principles of activity,
as well as the speciality of its legal entity. Attention is also devoted to the main Conventions, which were signed on the eve of The First
World War and after The Second World War and shows the main preconditions and reasons for the creation of the intergovernmental
organization FATF.
The ongoing growth of the drug business, the expansion of its geographical boundaries, increasingly sophisticated and dangerous
forms of this criminal business, the struggle of states on large-scale crime related to the legalization of criminal proceeds led to the creation
of FATF and it achieved important results in this area.
FATF cannot be considered by an international organization because it has not been established on the basis of an international
treaty and does not have an approved statute. However, despite this, FATF has a decision to establish a group – this is the legal basis
for its activities and is an intergovernmental organization. Analysis of FATF’s activities shows that FATF’s initial priority was to combat
laundering of proceeds from drug trafficking. Today FATF’s activities have three main directions: expanding the actions of its adopted
recommendations to all continents and regions of the globe; checking how member states are executed and how anti-money laundering
measures are implemented in other states, based on 40 plus 9 FATF recommendations that are guidance to action; tracking worldwide
methods and schemes of laundering criminally used capital and developing countermeasures. To date, a set of 40 FATF recommendations
and 9 Special Recommendations for Countering The Financing of Terrorism is a set of universal standards that lead to a successful
fight against money laundering. The new version of this document was adopted in 1996, 2003 and 2012. One of FATF activities is to
define so-called non-cooperative countries and territories and make their list, which is called the «blacklist». Although the country’s
inclusion in the “blacklist” does not lead to the application of sanctions by the world community, it indicates a degree of trust in it on
the part of foreign investors. Lacking the status of an international legal act, FATF’s recommendations in practice received general
recognition as universal international standards in the field of anti-money laundering. Successful work on counteracting the laundering
of dirty funds should be carried out simultaneously at two levels – at international and national levels. FATF functions – to monitor the
processes of implementation of such measures, to study ways and techniques of money laundering, to develop preventive and preventive
measures, to promote the global implementation of anti-money laundering standards. FATF’s recommendations in practice received
general recognition as universal international standards in the field of anti-money laundering. Every year FATF organizes meetings on
the analysis of methods and trends related to combating the laundering of criminal proceeds and financing of terrorism.

Published
2020-11-10
How to Cite
PereverzyevaО., & Gadjiev, V. (2020). Features of legal nature Financial Action Task Force on Money Laundering FATF. Law Review of Kyiv University of Law, 1(3), 370-374. https://doi.org/10.36695/2219-5521.3.2020.68
Section
The legal system of Ukraine and international law, comparative legal studies