FATF Recommendations Guide
The Financial Action Task Force (FATF) sets the global standard for combating money laundering and terrorist financing. This guide explains how adverse media screening supports key FATF recommendations.
What is FATF?
The Financial Action Task Force (FATF) is an inter-governmental body that sets international standards for AML/CFT. Its 40 Recommendations form the basis for national AML laws in 200+ jurisdictions.
FATF also maintains "grey lists" and "black lists" of countries with strategic AML/CFT deficiencies, which directly impact cross-border transactions and correspondent banking relationships.
Key Recommendations for Screening
Recommendation 10: Customer Due Diligence (CDD)
Financial institutions must identify customers, verify their identity, and understand the nature of business relationships. Adverse media screening provides behavioral context beyond identity documents—revealing if a customer has been linked to financial crime, fraud, or regulatory violations.
Recommendation 12: Politically Exposed Persons (PEPs)
Enhanced due diligence is required for PEPs due to their elevated corruption risk. Our API identifies PEPs and returns associated adverse media, including bribery allegations, asset freezes, and abuse of office.
Recommendation 22: DNFBPs (Designated Non-Financial Businesses)
Real estate agents, lawyers, accountants, and dealers in precious metals must also apply CDD. Adverse media screening helps these sectors identify high-risk clients without dedicated compliance infrastructure.
Recommendation 19: Higher-Risk Countries
Enhanced due diligence is required for customers from FATF grey-listed or black-listed countries. Our data includes country risk signals and cross-references entity locations with FATF lists.
How Our API Supports FATF Compliance
PEP Identification
Our database flags Politically Exposed Persons (heads of state, senior government officials, military leaders) and their family members and close associates (RCAs).
Risk-Based Approach
FATF emphasizes a risk-based approach. Our API returns a match_score and
risk_categories that help you prioritize enhanced due diligence resources.
Example API Response
"is_pep": true, "pep_level": "National", "risk_categories": ["Corruption", "Abuse of Office"]
Ongoing Monitoring
FATF requires ongoing monitoring, not just one-time checks. Our webhook alerts notify you when new adverse media appears on monitored entities, supporting continuous risk assessment.
Implementation Checklist
- ☐ Screen all customers at onboarding (Rec. 10)
- ☐ Flag PEPs for enhanced due diligence (Rec. 12)
- ☐ Apply higher scrutiny to customers from FATF-listed countries (Rec. 19)
- ☐ Extend screening to DNFBPs if applicable (Rec. 22)
- ☐ Implement ongoing monitoring with webhook alerts
- ☐ Document screening decisions for audit trail
Strengthen your FATF compliance
Screen for PEPs, sanctions, and adverse media aligned with FATF recommendations.
Book a Demo