FATF Recommendations & MT101 Explained in 251 Words 1

About a month ago i wrote a post What Is FATF & How Will It Impact My Payments? It provides an overview of the the FATF Recommendations and the impact on MT101 payments into Europe. The post triggered A LOT of emails, and so in this post i thought i would recap as simply as i could what changes to MT101 wire payments the FATF Recommendations will require. So here goes in 251 words…

1. FATF – Financial Action Task Force

Is all about combating money laundering, terrorist financing and other dangers to the financial system

2. FATF Recommendations

Are 40 recommendations that are recognised globally as the international standard for anti money laundering (AML) and countering the financing of terrorism (CFT)

3. FATF Recommendation 16

States that financial institutions should include accurate originator and beneficiary information on wire transfers

4. EU Regulation 2015/847

EU Regulation 2015/847, published on 20th May, 2015 are the EU rules around payer and payee information on wire transfers, which correspdon with the FATF Recommendations

5. Required Payer & Payer Information (Article 4)

Required payer (person paying) Information:

a.) Name of the Payer

b.) Payers payment account number

c.) Payers address OR Official personal document number OR Customer Identification Number OR Date and place of birth

Required payee (person being paid) Information:

d.) Name of the payee

e.) Payees account number

6. Payments / Funds Transfers Within the EU (Article 5)

If the amount is:

  • Over EUR 1000 – a.), b.) c.) d.) e.) are all required
  • Less than EUR 1000 – a.) b.) d.) e.)

7. Payments / Fund Transfers Outside of the EU (Article 6)

If the amount is:

  • Over EUR 1000 – a.), b.) d.) e.) are all required
  • Less than EUR 1000 – a.), b.) d.) e.) are all required — I need to check this…!

8. Obligations on the Payment Service Providers

Banks needs to check and monitor in real time that payments adhere to the above rules. If the payments are not compliant the bank should either request the missing information, reject or suspend the payment transfer

[EPSB] Thanks for stopping by – Take a look around…!![/EPSB]

9. Record Retention

Payment information should be retained for 5 years

10. FATF Recommendation: EU Deadline

26th June, 2017!

One comment on “FATF Recommendations & MT101 Explained in 251 Words

  1. Reply rhonda Jul 26,2017 5:30 pm

    Is BIC identifier and account number sufficient or is only name address and account number are accepted on MT202cov.

    We need to modify our system if BIC is no longer expected by EU 2015/847

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