Guidance for Accountants
FATF works closely with the accounting profession and has published tailored guidance, including the Risk-Based Approach for Accountants, to support compliance and help firms manage AML risks effectively.
International AML Framework & Regulations
Global Standards: Financial Action Task Force (FATF)
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
FATF has developed 40 FATF Recommendations, which ensure a co-ordinated global response to prevent organised crime, corruption and terrorism. They help authorities go after the money of criminals dealing in illegal drugs, human trafficking and other crimes. There are more than 200 countries and jurisdictions committed to implementing the Recommendations.
Adapting to Emerging Risks
FATF continuously reviews and strengthens its standards to address new threats—such as the rise of virtual assets and cryptocurrencies. It monitors countries through Mutual Evaluation Reviews to ensure full and effective implementation, and holds non-compliant jurisdictions to account.
European Union
EU’s Fifth Anti-Money Laundering Directive (5AMLD)
In June 2018, the Directive (EU) 2018/843—commonly known as the Fifth Anti-Money Laundering Directive (5AMLD)—became law. It amends Directive (EU) 2015/849, reinforcing the EU’s framework for preventing the use of the financial system for money laundering and terrorist financing.
What is 5AMLD?
5AMLD is a key part of the EU’s anti-money laundering and counter-terrorist financing (AML/CTF) policy. It introduces stronger transparency measures and expands the scope of regulated entities to address emerging risks, including:
- Enhanced access to beneficial ownership registers
- Regulation of virtual asset service providers (VASPs)
- Tighter controls on prepaid cards and anonymous transactions
- Greater scrutiny of high-risk third countries
Channel Islands and Isle of Man
Channel Islands
Members based in the Channel Islands are not subject to UK anti-money laundering (AML) legislation. However, they must confirm that they are aware of and comply with the relevant AML laws in their jurisdiction—such as those in Guernsey or Jersey.
Isle of Man
In the Isle of Man, AML and counter-terrorist financing (CTF) legislation is overseen by the Department for Home Affairs (DHA).
Firms must comply with AML/CTF requirements under The Proceeds of Crime Act 2008 (POCA) and The Terrorism and Other Crime (Financial Restrictions) Act 2014.
This applies to all businesses that accept cash payments of €15,000 or more (or the equivalent in any currency, including GBP) and are classified as a designated business type.
People's Republic of China
AML and CTF Framework
The PRC Anti-Money Laundering Law and the PRC Counter-Terrorism Law set out AML/CTF obligations for all financial institutions operating in the PRC and certain non-financial institutions with AML responsibilities.
Regulatory Oversight
The People’s Bank of China (PBoC) is the primary authority overseeing AML compliance. It has issued detailed regulations, including measures on the Administration of Customer Identity Verification and rules on Identification and Transaction Record-Keeping by Financial Institutions.
These rules outline specific requirements for verifying customer identity and maintaining transaction records.
International Evaluation
The PRC underwent a FATF Mutual Evaluation Review in 2019 and a follow up report was issued in 2020 which explored progress made in strengthening money laundering and terrorist financing controls.
US Requirements
The United States of America has federal anti-money laundering laws and 38 of the 50 US states have AML laws. Some of these state regimes merely establish reporting requirements, while others either mirror federal law or, in some cases, are more stringent than federal law.
During the 1990s, a series of AML laws were enacted to strengthen the AML regime. The most significant of these laws was the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 (‘the Patriot Act’), which was passed into law in the immediate aftermath of the 11 September terrorist attack. The Patriot Act amended The Bank Secrecy Act (BSA) in order to strengthen the government’s ability to prevent, detect and prosecute international money laundering and the financing of terrorism.
Transparency International
Transparency International (TI) is a global movement working in over 100 countries to end the injustice of corruption. TI works to expose the actors, methods and systems that the corrupt depend upon to facilitate the laundering, transfer and investment of dirty money.
