The FATF attaches a great importance to the fight against corruption: corruption has the potential to bring catastropic harm to economic development, the fight against organized crime, and respect for the law and effective governance. The G20 called upon the FATF to address the problem of corruption in the framework of its work on combating money laundering and terrorist financing. Corruption and money laundering are instrinsically linked. Corruption offences, such as bribery or 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.
The FATF Recommendations were designed to combat money laundering and terrorist financing, but when effectively implemented they can also help combat corruption, by:
- safeguarding the integrity of the public sector
- protecting designated private sector institutions from abuse
- increasing transparency of the financial system
- facilitating the detection, investigation and prosecution of corruption and money laundering, and the recovery of stolen assets.