FATFstyle

FATFstyle is a term used to describe an approach to anti-money laundering and countering the financing of terrorism (AML/CFT) that is aligned with the standards, guidance, and evaluation style of the Financial Action Task Force (FATF). It refers to the way organizations structure policies, risk assessments, governance, and reporting to meet FATF recommendations and to fit the format used in FATF mutual evaluations and action plans.

Originating in regulatory and policy discussions, FATFstyle signals a comprehensive, risk-based implementation. It is used by regulators, financial institutions, and compliance professionals to describe programs that aim to demonstrate adherence to FATF standards through documented processes, measurable controls, and transparent reporting.

Core elements typically associated with FATFstyle include:

- a risk-based approach to customer due diligence and ongoing monitoring

- robust governance and accountability structures

- comprehensive record-keeping and transaction monitoring

- suspicious activity reporting and cooperation with authorities

- transparency around beneficial ownership and corporate structures

- consistent cross-border cooperation and information sharing

In practice, FATFstyle is evaluated through FATF mechanisms, including mutual evaluations, on-site visits, and action plans that track jurisdictions’ progress in addressing identified deficiencies.

Limitations and criticisms of FATFstyle include its resource intensity, potential emphasis on paperwork over real-world effectiveness, and varying implementation across jurisdictions. Privacy and data protection concerns are also raised in debates about enhanced scrutiny and information sharing.

See also: FATF, AML/CFT, KYC, risk-based approach, beneficial ownership.