HSE University Anti-Corruption Portal
General Information
Anti-Corruption Track
Evaluation Mechanism

FATF is an intergovernmental body founded in 1989 to develop and introduce international standards that aim to prevent money laundering and terrorist financing (ML/TF). At present, the FAFT includes 37 jurisdictions and 2 international organizations.

The main instructive document of the FATF is constituted by 40 recommendations in the area of ML/TF. The recommendations are recognized by over 190 countries, including Russia that has participated in the activities of the FATF since 2003. The body is run by the President of the FATF elected for a one-year term. The incumbent President of the FAFT is Marcus Pleyer from Germany. The secretariat of the FATF is in Paris, in the OECD headquarters.

The key decisions are adopted in the plenary meetings of the FATF that are held three times a year.

The 40 recommendations in the area of ML/TF do not regard directly the fight against corruption. However, the FATF has been paying increasing attention to anti-corruption matters, considering corruption as a key predicate offence to money-laundering.

In 2011 the FAFT convened an anti-corruption expert meeting. It drafted a number of important guiding documents for the evaluation of corruption risks and the application of the FATF recommendations to counter corruption. It also closely cooperates with the G20 Anti-Corruption Working Group, with which it holds annual joint meetings.

The FATF does not have a separate mechanism for evaluating the implementation of anti-corruption measures by member states. These aspects are tackled in the framework of a wider monitoring of the implementation of the FATF recommendations by member states.

The monitoring is implemented through peer reviews that demonstrate if the ML/TF system of a member state corresponds to the FATF recommendations. Then the country is ranked under each recommendation.

After the evaluation is completed and approved by the FATF experts, a more detailed analysis is undertaken in the areas where the evaluated ML/FT system has major flaws.

Two years after that the evaluated country should submit a report on the measures adopted to eliminate the detected flaws. Following the examination of the report the FATF decides if the achieved progress is sufficient or not.

All reports are available here.

The 37 Members of the FATF
Documents
Best Practices Paper: the Use of the FATF Recommendations to Combat Corruption

In spite of the fact that the efforts to combat money-laundering and terrorist financing (ML/TF) and corruption are complementary, in practice they are not always compatible. This document is designed to provide guidance and best practices for the use ML/TF measures to fight corruption for the bodies responsible for drafting policies and practitioners.

The FATF recommendations may constitute an effective instrument for combating corruption. Their effective implementation favours the creation of the environment where corruption cannot flourish or go unnoticed and facilitates detection and confiscation of proceeds of corruption.

Use of the FATF Recommendations to Support the Fight against Corruption

The document contains the information explaining why the implementation of the FATF recommendations favours the creation of the environment where corruption will hardly go unnoticed and unpunished.

Specific Risk Factors in Laundering the Proceeds of Corruption

The report is designed to assist practitioners in the financial sector to better understand and detect the risk factors that might provide indications of laundering of proceeds of corruption.

Laundering the Proceeds of Corruption

This is a FATF research paper on the links between corruption and money-laundering, aiming at better understanding the phenomenon of corruption, its mechanisms and weaknesses from the perspective of ML/TF.

FATF 40 Recommendations

The Recommendations provide for a whole set of measures to counter money-laundering, including the functioning of the system of criminal proceedings and law enforcement, financial system and the mechanisms of its regulation and international cooperation. The Recommendations outline the main principles for such measures and allow countries to show flexibility in their implementation in accordance with their specifics and legal environment.

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