FATF 40 Recommendations
FATF Section A: AML/CFT Policies and Coordination (R.1-2)

FATF 40 Recommendations FATF-R.1_2: Risk-Based Approach + National Cooperation (FATF R.1 and R.2)

Recommendation 1 (Risk-Based Approach): countries should identify + assess + understand their money laundering / terrorist financing risks + apply a RISK-BASED APPROACH to ensure that measures to prevent or mitigate ML/TF are commensurate with the risks identified. Countries should require financial institutions + DNFBPs to identify + assess + understand their own ML/TF risks + take action to mitigate them. The risk-based approach is the foundational principle of the entire FATF regime. National Risk Assessments (NRAs) are conducted periodically (typically every 3-5 years). Recommendation 2 (National Cooperation): countries should have national AML/CFT policies + designate authorities or coordination mechanisms to develop + implement those policies; ensure inter-agency cooperation including between policymakers + financial intelligence units (FIUs) + law enforcement + supervisors. The R.1/R.2 framework anchors the entire FATF regime in country-level risk assessment + national coordination architecture.

Other controls in FATF Section A: AML/CFT Policies and Coordination (R.1-2)

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