Clifford Chance

The New FATF 40 Recommendations and the Impact on Hong Kong and China: A Framework for the Future

9 March 2012

Since 1991 Hong Kong (HK) has been an independent member of the Financial Action Task Force (FATF), an inter-governmental organisation established by the G-7 Summit in 1989, based in the OECD, Paris, France, with responsibility for promoting national and international policies to combat money laundering and terrorism financing. The People's Republic of China (China) is also one of the 36 members of FATF, having become a full member in June 2007. Anti-money laundering measures (AML) and combating financing of terrorism (CFT) have been an increased focus of national regulators around the world. Member countries and numerous observer organisations of the FATF participate in the formulation and implementation of the FATF's 40 Recommendations. The members of FATF represent most major financial centres in all parts of the world. The continued need to further strengthen agreed international standards and the evolution of money laundering techniques has led the FATF to revise its International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation (the Recommendations) following its recent plenary in February 2012.

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