FATF Recommendations: AML Guide for UK Firms
In brief: The FATF Recommendations are international AML standards that influence how countries design rules on risk assessment, CDD, beneficial ownership, sanctions, and supervision.
Key points
- FATF sets international standards; UK law and supervisor rules apply them domestically.
- FATF themes help firms understand why risk-based controls matter.
- Do not cite FATF alone as a substitute for UK legal obligations.
What are the FATF Recommendations?
The Financial Action Task Force publishes international standards for anti-money laundering, counter-terrorist financing, and proliferation financing controls. These standards are known as the FATF Recommendations.
FATF's official Recommendations page is the primary source.
Why they matter to UK firms
UK AML rules are domestic law, but FATF shapes the international framework behind risk-based supervision, customer due diligence, beneficial ownership, sanctions, suspicious reporting, and record keeping.
Practical themes
- Identify and assess risk.
- Apply customer due diligence.
- Understand beneficial ownership.
- Monitor relationships.
- Report suspicion.
- Keep records.
- Apply enhanced measures for higher risk.
Common mistake
The common mistake is quoting FATF as if it is the firm's direct rulebook. It is better to use FATF as context and rely on UK law and supervisor guidance for operational decisions.
This guide is general information for UK regulated firms. Sanctions change quickly, so always check the relevant official list or get specialist advice before making a client decision.