These guidelines are intended for practitioners in the accounting profession; countries and their competent authorities, professionals in the banking sector and other designated financial and non-financial sectors that rely on the auditors` customer due diligence. The guide is intended to assist auditors in designing effective measures to manage their ML/TF risks when establishing or maintaining business relationships. In particular, it clarifies the obligation of accountants to identify and verify beneficial ownership information. The report also challenges the view, sometimes held by criminals and sometimes supported by claims by legal practitioners themselves, that solicitor-client privilege would legally allow a lawyer to continue acting on behalf of a client involved in criminal activity and/or prevent law enforcement authorities from accessing information. so that the customer can be sued. The draft guidance will include separate annexes with examples of supervisory practices for the implementation of RBAs and private sector practices for the implementation of RBAs. These annexes are currently being prepared. We welcome your contributions to these annexes. In June 2007, the FATF adopted Guidelines on the Risk-Based Approach to Combating Money Laundering and the Financing of Terrorism: High-Level Principles and Procedures, which include guidelines for authorities and guidelines for financial institutions. This was the culmination of extensive consultation between private and public sector members of an electronic advisory group (EAG) set up by the FATF. This guide highlights the need for an informed assessment of ML/TF risks faced by legal professionals so that initial and ongoing client due diligence policies, procedures and measures can mitigate these risks.

This risk-based approach (RBA) is essential for the effective implementation of the FATF recommendations on combating money laundering and terrorist financing. The guidelines include a section for managers in the accounting profession. It explains the risk-based approach to overseeing this profession, as well as how to monitor the risk-based approach to ensure auditors are effectively managing their risks. The guidelines stress the importance of monitoring beneficial ownership requirements and nominee agreements to ensure that up-to-date information on legal entities and legal arrangements is kept and available in a timely manner. The accounting industry must comply with customer due diligence and record-keeping obligations when involved in real estate transactions on behalf of its client. management of money, securities or other assets; management of bank accounts, savings or securities; Create, operate or manage companies or legal entities and agreements, as well as the purchase and sale of business units. EAEC continued its work until these guidelines for legal practitioners were submitted to the WGEI. Following further international consultations with the public and private sectors, the FATF adopted the guidelines at its October 2008 plenary session. Guidelines for each of the other areas of the DNFBP are published separately. Purpose of the guidelines The report also describes indicators on money laundering and terrorist financing that may be useful to legal practitioners, self-regulatory bodies, competent authorities and law enforcement agencies. DBT can take different forms. In some countries, these may be mainly lawyers.

In other countries – particularly those with a high concentration of non-resident companies – TCPS are independent trusts or trusts that are subsidiaries of banks and may be other professionals such as accountants. In other countries, trust service providers (e.g., trust companies) and business service providers are separate classes of companies subject to separate regulatory requirements. As a result, not all individuals and businesses active in the PSTC sectors provide all of the services listed in the definition of a PSTP. Therefore, risks should be identified and managed on a service-by-service basis. The legislated services that auditors provide make them vulnerable to being unknowingly involved in money laundering or terrorist financing. Recent FATF investigations have highlighted examples of accountants who have used their profession, business infrastructure and knowledge to facilitate money laundering for criminal clients. For example, professional money launderers are known to maintain a parallel accounting system with records of transactions involving proceeds of crime. Accounting and related accounting firms must therefore protect themselves against the abuses of criminals and terrorists. In October 2008, the FATF adopted guidelines on the risk-based approach (RBA) to combating money laundering and terrorist financing for legal practitioners. This guide has been developed by the FATF in close consultation with representatives of the legal profession and notarial law firms. This guide supports the development of a common understanding of what RBA entails, outlines high-level principles for the application of RBA, and identifies best practices for governments and legal practitioners in designing and implementing an effective RBA.

February 25, 2019 – The FATF is developing guidelines to assist countries, competent authorities and legal, accounting, fiduciary and business services professionals in applying a risk-based approach (RBA) to AML/CFT. The guidelines are intended to support both the private sector and public authorities by focusing on ML/TF risks and related mitigation measures. The FATF definition of the TCSP refers to fiduciary and corporate service providers that are not covered by the FATF Recommendations and therefore excludes financial institutions, lawyers, notaries, other independent legal professionals and auditors. Separate guidelines are published for these sectors and they should therefore apply these guidelines. However, all persons involved in PSTC activities may also refer to the PSTC guidelines, as they are specifically tailored to PSEC services. When submitting your response, please include the name of your organization and your contact information. You can insert specific drafting suggestions directly into the attached text of the draft guidance in Track Changes. Please note that the current draft guidelines have not yet been approved by the FATF. It will be subject to further revisions and modifications. The FATF is consulting with private sector stakeholders before finalizing the guidelines and is seeking their views and concrete suggestions on the text of the three guidance documents: These guidelines are presented in a targeted and relevant manner for CHW.

The roles and therefore the risks of the different sectors of the DNFBP are generally distinct. However, in some industries, there are interrelationships between different sectors of the DNFDP and between DNFDCs and financial institutions. For example, in addition to specialized fiduciary and corporate service providers, financial institutions, lawyers and auditors may also provide the fiduciary and corporate services targeted by the recommendations. Lawyers work in a wide range of business structures that vary from country to country and even within a country. From individual practitioners to multinational companies, they offer a wide range of services. Given the different scope and activities, some legal professions may be more vulnerable to money laundering (ML) and terrorist financing (TF) than others. This guide is intended for legal practitioners, countries and their competent authorities, including line managers of the legal profession, as well as legal practitioners who have legal practitioners as clients. The guide is intended to help legal professionals design effective measures to manage their ML/TF risks when establishing or maintaining business relationships. In particular, it explains the obligation of legal practitioners to identify and verify beneficial ownership information and provides examples of simplified, standardised and strengthened customer due diligence measures.