Most Requested
Anti Money Laundering Training
High Profile & Complex Cases
Money Laundering & Terrorism
Asset Tracing Services
Know Your Customer Services
New
AML Presentation Slides
Proximal Consulting Brochure
Due Diligence Country Reports
Background Checks Introduction
Selected White Papers
Organized Crime In Russia
Terrorist Funding Is Not Money
Laundering
The Dominion Of Melchizedek
Procedures & Controls To Stop
Money Laundering
Newsletters & Bulletins
Subscribe To Our Newsletter
Read The Latest Issue
Newsletter Archive
Page 1 / / Page 2 / / Page 3 / / Page 4 //
FATF
FATF stands for the Financial Action Task Force on Money Laundering (also known as GAFI: the Group d'Action Financière sur le Blanchiment de Capitaux) which was established by the Group of Seven Nations summit in Paris in July 1989 to examine methods to combat money laundering. Its secretariat is based at the OECD in Paris . The members of the FATF are: Argentina , Australia , Austria , Belgium , Brazil , Canada , Denmark , European Commission, Finland , France , Germany , Greece , Hong Kong , China , Iceland , Ireland , Italy , Japan , Luxembourg , Mexico , Netherlands , New Zealand , Norway , Portugal , Russian Federation , Singapore , Spain , Sweden , Switzerland , Turkey , United Kingdom , United States , the European Commission and the Gulf Co-operation Council. In 1990 the FATF issued 40 recommendations to control and prevent money laundering, which were revised in 1996 as a result of changing events and trends. FATF also issues annual reports and typology papers. Both of these give extremely comprehensive information on trends, issues, methods, preventative measures and other useful material. These reports and the 40 recommendations can be downloaded in their entirety from FATF's Web site (see Appendix II: Web directory).
FinCEN
The United States Department of the Treasury Financial Crimes Enforcement Network (also see Appendix II: Web directory).
FIU
Financial Intelligence Unit: the national central unit/authority as recommended by the FATF, which receives, analyses and acts upon suspicious activity reports and deals with AML matters.
Front Company
Normally a company that is a front for organized crime or other illegal activities. It is argued that by their very nature all IBC's are front companies.
IBC
International Business Company or Corporation. Can be incorporated in most offshore financial centres and although some attributes may vary typically such a company is not permitted to trade in the country of incorporation; is not taxed or only low tax is applied; and it is possible to own such an entity anonymously through nominee directors and bearer shares. Additionally there are very few corporate reporting requirements.
Integration
The final part of the money laundering process whereby the funds that were originally a direct result of, and directly associated to, criminal activity are fully integrated into the banking system and are thus now clean.
KYC
One of the fundamental precepts of global anti-money laundering regulations: Know Your Customer. The process whereby the identity of a new customer must be established before a business or financial relationship can begin or proceed.
Layering
The second stage of the money laundering process where funds are split up and given more authenticity and a better provenance by financial tools such as shares, stocks, loans and any other mechanism that pushes the criminal money further into the monetary system and disguises its origins.
ML
Money laundering.
NCCTs
Non-cooperative countries and territories; FATF abbreviation for 'blacklisted' countries and territories.
Nominee Director
When a professional (or another person) acts as a Director for a client without revealing or recording the identity of the client. In Offshore Financial Centres it is quite common for company formation agents to be Nominee Directors of thousands of companies.
Numbered account
Fairly common and not to be confused with anonymous accounts. This is where a bank, to hide the identity of the customer, gives their account a number or code name. However, the bank itself should know the identity of the customer and have verified it.
OFC
See ‘Offshore Financial Centre’ below.
Proximal Consulting
2 Pelham Court, London Road, Marlborough, Wiltshire, SN8 2AG
Rue Du Rhone 14, 1204 Geneva, Switzerland
