Which of thebelow statementsare supported by theFinancial Action Task Force (FATF) 40 Recommendationsadopted in 2012?

TheFATF 40 Recommendationsoutlineglobal AML/CFT standards, includingrisk-based compliance and beneficial ownership transparency.

Option B (Correct):FATF requires nations to implement financial sanctions in coordination with the UN Security Council.

Option C (Correct):FATF emphasizes a risk-based approach (RBA) to prevent ML/TF.

Option E (Correct):FATF mandates transparency in beneficial ownership to prevent shell company misuse.

Why Other Options Are Incorrect:

Option A (Incorrect):FATF does not require institutions to avoid high-risk customers but to apply appropriate risk-based controls.

Option D (Incorrect):Governments do not need identical crime investigation frameworks but should ensure effective cooperation.

Best Practices for FATF Compliance:

Apply risk-based due diligence on high-risk customers.

Enhance beneficial ownership transparency measures.

Implement targeted financial sanctions in coordination with global authorities.