:PROPERTIES:
:ID:       03ebdb80-a9af-4e76-a443-8556424996ed
:ID:       auto-fatf
:CREATED:  [2026-05-23 Sat]
:END:
#+title: FATF (Financial Action Task Force)
#+filetags: :passepartout:compliance:framework:fatf:

risk-weight mapping correctness. A $100K/yr Basel gate package for a G-SIB
is a trivial expense relative to the capital requirement penalty of getting the
mapping wrong.

** FATF (Financial Action Task Force) — AML/CFT Standards

International standard-setter for anti-money laundering and counter-terrorism
financing. 40 Recommendations covering: risk assessment, customer due diligence
(CDD), beneficial ownership transparency, suspicious transaction reporting,
targeted financial sanctions, proliferation financing. National implementation
varies by jurisdiction.

Who must comply: Financial institutions, DNFBPs (designated non-financial
businesses and professions), virtual asset service providers (VASPs). In
practice: every bank, money service business, crypto exchange, and high-value
dealer globally.

Penalties: National enforcement varies. Systemic failures lead to FATF grey-list
(monitoring) or black-list (counter-measures). Grey-listing increases transaction
costs — Iran and North Korea are black-listed.

Why it matters: FATF's CDD requirements are the most widespread and
rule-complex compliance obligation globally. The gate stack can encode
tiered CDD rules, prove that every customer onboarding followed the correct
verification path, and produce an auditable trail for every suspicion report. First-mover advantage is significant — no vendor offers verifiable AML gate automation at scale.

Part of the [[id:e4a7b3d2-1c9f-4b6e-8a2d-5f3c7e1b9a0c][compliance framework index]].
