International efforts to combat money laundering

In this lesson

1. 0:00 Financial Action Task Force overview
2. 0:26 Key FATF recommendations explained
3. 1:29 Customer due diligence and reporting requirements
4. 2:05 Suspicious transaction reporting obligations

About this lesson

The FATF, established by G7 governments in 1989, sets consistent global standards that require countries to criminalise money laundering, confiscate proceeds, and implement customer due diligence checks. Understanding these international frameworks is essential for the Corporate and Business Law paper, as regulators and organisations must comply with FATF recommendations to maintain financial integrity and prevent financial crime. The key recommendations you need to know include mandatory customer background and identity checks, legal requirements to report suspicious transactions, and criminal penalties for tipping off individuals under investigation. Each country establishes its own financial intelligence unit—such as the National Crime Agency (NCA) in the UK—to receive and investigate suspicious activity reports. While individual countries adapt these principles to their own legal frameworks, the FATF ensures a coordinated global approach that protects the financial system from abuse. This knowledge directly supports your understanding of compliance obligations and the regulatory environment that shapes modern business practice.

Duration: 3m