Which is a characteristic of the Financial Action Task Force (FATF) 40 recommendations?
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A. B. C. D.B
The Financial Action Task Force (FATF) 40 Recommendations are a set of global standards for anti-money laundering (AML) and countering the financing of terrorism (CFT) that were developed by the FATF, an intergovernmental body established in 1989 to combat money laundering and terrorist financing. The recommendations were first published in 1990 and have since been updated several times, most recently in 2012.
Of the options provided, answer B is the correct one. The FATF 40 Recommendations are indeed global standards for countering money laundering and countering the financing of terrorism. They are recognized by governments, regulatory bodies, and financial institutions around the world as a benchmark for AML/CFT regulation and best practice.
The recommendations cover a wide range of areas, including the criminal justice system, customer due diligence, record-keeping, reporting of suspicious transactions, and international cooperation. They provide guidance on how countries can design and implement an effective AML/CFT regulatory framework, taking into account their legal, financial, and regulatory systems.
It is important to note that the recommendations are not legally binding, nor are they intended to be a one-size-fits-all solution. Rather, they are designed to be adapted to the specific needs and circumstances of individual countries. Nevertheless, many countries have incorporated the recommendations into their domestic AML/CFT laws and regulations, and compliance with the recommendations is often a condition of membership in international organizations such as the United Nations and the World Trade Organization.
In summary, the FATF 40 Recommendations are a set of global standards for countering money laundering and countering the financing of terrorism. They are recognized as a benchmark for AML/CFT regulation and best practice by governments, regulatory bodies, and financial institutions around the world, and have been incorporated into the domestic AML/CFT laws and regulations of many countries.