The FATF Recommendations for sanctions and AML screening
Last reviewed 27 September 2026. A summary for orientation, not legal advice.
The Financial Action Task Force (FATF) sets the international standard against money laundering, terrorist financing and proliferation financing: 40 Recommendations that member jurisdictions turn into national law and against which they are assessed in mutual evaluations. These are the Recommendations that most directly shape screening and monitoring.
The Recommendations that matter most for screening
- R.1: risk-based approach. Identify and assess risk, and apply measures proportionate to it.
- R.6: targeted financial sanctions for terrorism and terrorist financing. Freeze without delay, and make nothing available to, persons designated by the UN Security Council or nationally.
- R.7: targeted financial sanctions for proliferation. The same obligations for designations linked to weapons of mass destruction.
- R.10: customer due diligence. Identify and verify customers and beneficial owners, understand the relationship, and monitor it on an ongoing basis.
- R.12: politically exposed persons. Senior management approval, source of wealth and source of funds, and enhanced ongoing monitoring for foreign PEPs, and risk-based measures for domestic and international-organisation PEPs, their family and close associates.
- R.15: new technologies. Includes the obligations on virtual asset service providers.
- R.16: payment transparency. Originator and beneficiary information travels with a transfer. Revised in June 2025 to require that information be accurate and as structured as possible, and to clarify responsibilities along the payment chain; countries are expected to implement the changes by the end of 2030.
- R.20 and R.21: reporting and tipping off. Report suspicious transactions promptly to the financial intelligence unit, and do not disclose that a report was made.
- R.24 and R.25: beneficial ownership. Adequate, accurate and up-to-date information on who owns and controls companies and legal arrangements.
Grey and black lists
At each plenary the FATF publishes two lists: jurisdictions under increased monitoring (the "grey list") and high-risk jurisdictions subject to a call for action (the "black list"). Firms use them in country risk ratings, and many regimes, including the UK's, require enhanced due diligence for customers linked to high-risk third countries.
How Praman Labs supports this
- Screening against UN Security Council and national sanctions and watchlist sources, including national republications of the UN list, with 3,000+ PEP sources in early access.
- Customer risk that starts from the customer's country, sector and onboarding channel, and ongoing monitoring on a cadence set by that risk.
- Transaction monitoring with sanctions screening of the other party to every payment.
Official sources
Related: UK AML and sanctions · EU AML Regulation · NYDFS Part 504
