The FATF Recommendations

The FATF Recommendations, initially adopted by the FATF Plenary in February of 2012, have been updated by making amendments to Recommendation 25 on transparency and beneficial ownership of legal arrangements.
The FATF Recommendations represent comprehensive and consistent framework of measures which countries should implement in order to combat money laundering (AML) and terrorist financing (CFT), as well as the financing of proliferation of weapons of mass destruction (CPF). The Financial Action Task Force (FATF) has updated its Recommendations to address new and emerging threats, clarify and strengthen existing obligations, and allow countries to take a more focused approach in areas where high risks remain or implementation could be enhanced.
The FATF Standards now include a stronger risk-based approach, allowing countries to adopt a more flexible set of measures to target their resources effectively and apply preventive measures commensurate to the nature of risks. The FATF also produces guidance and best practice papers to assist countries with the implementation of the FATF standards.
The FATF calls upon all countries to implement effective measures to bring their national systems for combating money laundering, terrorist financing and the financing of proliferation into compliance with the revised FATF Recommendations.
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As described on page 141, the present February 2023 update of the FATF Recommendations add a revision of Recommendation 25 by changing the Glossary definitions of “beneficial owner”, “beneficiary” and “legal arrangements” in order to strengthen the standards on beneficial ownership of legal arrangements, full quote:
>25. Transparency and beneficial ownership of legal arrangements
Countries should assess the risks of the misuse of legal arrangements for money laundering or terrorist financing and take measures to prevent their misuse. In particular, countries should ensure that there is adequate, accurate and up-to-date information on express trusts trusts and other similar legal arrangements including information on the settlor(s), trustee(s) and beneficiary(ies), that can be obtained or accessed efficiently and in a timely manner by competent authorities. Countries should consider facilitating access to beneficial ownership and control information by financial institutions and DNFBPs undertaking the requirements set out in Recommendations 10 and 22.