FATF seeks consultation on mutual evaluation standards

By Christine Duhaime | November 4th, 2010

In preparation for the 4th round of mutual evaluations, the FATF is reviewing the standards with which it performs its evaluations and has released a consultation paper for public input on the following topics: risk based approaches; tax crimes as a predicate offence for money laundering; customer due diligence mechanisms; politically exposed persons; and third party reliance.

Of particular note is the proposed change for life insurance companies. The FATF is proposing that life insurance companies focus their client identification efforts on beneficiaries of policies, in addition to the policy holders. The identity of first level beneficiaries will have to be ascertained and they will be subject to the domestic money laundering reporting and record keeping requirements, as well as second level or contingent beneficiaries (those who are named in a will as beneficiaries or belong to a class of beneficiaries, such as children in a trust). Politically exposed persons who are beneficiaries, or contingent beneficiaries, will be subject to an increased level of scrutiny.

The consultation document can be viewed on the FATF website here.

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