Truth Technologies Name and Address Algorithms White Paper

Synopsis: With any filtering software name and address matching is critical to reduce the number of false positives (names that are similar to those on watch lists) without causing a false negative (failing to identify a customer who is on a watch list).

This white paper describes the potential problems with name and address matching; explores some of the existing commerically published algorithms; describes overall comprehensive strategies to name and address matching; and provides a checklist with questions to ask potential vendors.

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FATF 40 Recommendations to Prevent MoneyLaundering

Synopsis: Money laundering methods and techniques change in response to developing counter-measures. In recent years, the Financial Action Task Force (FATF) 1 has noted increasingly sophisticated combinations of techniques, such as the increased use of legal persons to disguise the true ownership and control of illegal proceeds, and an increased use of professionals to provide advice and assistance in laundering criminal funds. These factors, combined with the experience gained through the FATF?s Non-Cooperative Countries and Territories process, and a number of national and international initiatives, led the FATF to review and revise the Forty Recommendations into a new comprehensive framework for combating money laundering and terrorist financing. The FATF now calls upon all countries to take the necessary steps to bring their national systems for combating money laundering and terrorist financing into compliance with the new FATF Recommendations, and to effectively implement these measures.

The 40+9 Recommendations, together with their interpretative notes, provide the international standards for combating money laundering (ML) and terrorist financing (TF).

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FATF 9 Special Recommendations (SR) on Terrorist Financing (TF)

Synopsis: Recognising the vital importance of taking action to combat the financing of terrorism, the FATF has agreed these Recommendations, which, when combined with the FATF Forty Recommendations on money laundering, set out the basic framework to detect, prevent and suppress the financing of terrorism and terrorist acts.

The 40+9 Recommendations, together with their interpretative notes, provide the international standards for combating money laundering (ML) and terrorist financing (TF).

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FATF Methodology for Assessing Compliance with the FATF 40 Recommendations and FATF 9 Special Recommendations

Synopsis: The Anti-Money Laundering/Combating Terrorist Financing (AML/CFT) Methodology 2004, including the assessment criteria, is designed to guide the assessment of a country's compliance with the international AML/CFT standards as contained in the FATF Forty Recommendations and the FATF Nine Special Recommendations on Terrorist Financing (referred to jointly as the FATF Recommendations). The criteria within this Methodology do not expand upon or modify the Forty Recommendations and Nine Recommendations which constitute the international standard. The Methodology is a key tool to assist assessors when they are preparing AML/CFT detailed assessment reports/mutual evaluation reports. It will assist them in identifying the systems and mechanisms developed by countries with diverse legal, regulatory and financial frameworks, in order to implement robust AML/CFT systems. The Methodology is also useful for countries that are reviewing their own systems, including in relation to technical assistance projects.

It reflects the principles set out in the FATF Recommendations. It is also informed by the experience of the FATF and the FATF-style regional bodies (FSRBs) from their mutual evaluations, of the International Monetary Fund (the Fund) and the World Bank (the Bank) in the Financial Sector Assessment Program and by the Fund from the Offshore Financial Center assessment program. The FATF, the Fund and the Bank have also reviewed the assessments/mutual evaluations conducted in 2002 and 2003 using the AML/CFT Methodology issued in October 2002, and these reviews have also provided guidance in developing this Methodology.

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FATF Money Laundering Using New Payment Methods

Synopsis: This report is builds on the 2006 Typologies report on New Payment Methods (NPMs). Since 2006, there has been a significant rise in the number of transactions and the volume of funds moving through NPMs. Consequently, the number of discovered cases where such payment systems were misused for ML/TF purposes has also increased.

This report compares the "potential risks" described in the 2006 report to the "actual risks" based on new case studies and typologies. The report also describes a number of indicators of suspicious activity. These red flag indicators will help NPM service providers and other financial institutions to detect ML/TF activities. The report describes the challenges presented in developing appropriate legislation and regulations for NPMs and the different approaches taken by national legislators and regulators.

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FATF Money Laundering Using Trusts and Company Service Providers

Synopsis: Trusts and Company Service Providers (TCSPs) provide an important link between financial institutions and many of their customers. TCSPs have often been used, wittingly or unwittingly, in the conduct of money laundering activities.

This comprehensive typologies report evaluates the effectiveness of the practical applications of the FATF 40+9 Recommendations as they relate to TCSPs. It also considers the role of TCSPs in the detection, prevention and prosecution of money laundering and terrorist financing. Finally, it evaluates the potential need for additional international requirements or sector-specific international standards for TCSPs.

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FATF The Use of FATF Guidelines to Fight Corruption

Synopsis: Leaders throughout the international community recognise that anti-money laundering (AML) and counter-terrorist financing (CFT) measures are powerful tools that are effective in the fight against corruption. The G20 leaders have asked the FATF to help detect and deter the proceeds of corruption by strengthening the FATF Recommendations. As part of this work, the FATF has developed this information note to raise public awareness of how the FATF Recommendations, when effectively implemented, help to combat corruption.

The link between corruption and money laundering Corruption and money laundering are intrinsically linked. Similar to other serious crimes, corruption offences, such as bribery and theft of public funds, are generally committed for the purpose of obtaining private gain. Money laundering is the process of concealing illicit gains that were generated from criminal activity. By successfully laundering the proceeds of a corruption offence, the illicit gains may be enjoyed without fear of being confiscated.

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The USA PATRIOT Act: A Sketch

Synopsis: The USA Patriot Act is the United States' implementation of the FATF 40+9 recommendations. This white paper provides a simplified overview of the USA Patriot provisions and what it means for compliance officers.

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