Central and Eastern Europe

Details

  • Service: Advisory, Forensic
  • Type: Publication series
  • Date: 2/27/2012

The Future of AML? - FATF updates its Recommendations 

Our article of the month summarizes the new recommendations of the Financial Action Task Force to combat money laundering. Of particular interest to this forum is the recommendation to extend the definition of a “Politically Exposed Person” (PEP) to include domestic PEPs as opposed to the former definition that only considered foreign PEPs.
In addition the definition now also considers those “entrusted with a prominent function by an international organisation“ to be PEPs, and the definition extends to family or close associates of a PEP. These recommendations are clearly aimed at making it more difficult for corrupt politicians to bank their ill-gotten gains.