FATF

International body that sets standards for combating money laundering and terrorist financing and assesses how countries implement them.

In practice

For family offices, the FATF matters in two ways: its standards shape the due diligence duties that banks and regulated offices apply, and its country lists determine when enhanced due diligence is required. Mutual evaluation reports also show how well a country implements the standards. In practice, the family office follows the decisions of the FATF plenary meetings, usually held in February, June and October, and updates its country risk assessment accordingly.

Distinctions and common mistakes

The FATF does not issue laws; its recommendations become binding only through national legislation, which can go further. A common mistake is to treat the FATF list as the only source of country risk and to ignore the separate EU list and national assessments.

Related terms

High-risk country

A country with strategic deficiencies in combating money laundering and terrorist financing, in particular according to the FATF lists.

Mentioned in these guides

• Family office software for SwitzerlandWhat Swiss family offices need from software: structures across jurisdictions, AML due diligence, automatic exchange of information and Swiss data storage.
• The risk-based approach in a family officeHow the risk-based approach under Swiss, German and Austrian AML law and the FATF works: risk factors, risk classes, graduated due diligence and documentation.
• Enhanced due diligence in practiceWhen enhanced due diligence applies and what to do in practice: PEPs, high-risk countries, complex structures, senior management approval, source of wealth.
• Swiss transparency register: reporting beneficial ownersIn operation since 1 October 2026: who must register in the Swiss transparency register, what is reported, who has access and how family offices proceed.
• Due diligence obligations under the Swiss Anti-Money Laundering ActDue diligence under the Swiss AMLA: identifying the contracting party, establishing the beneficial owner, special clarifications, records – and practice.
• The Due Diligence Act (SPG) in LiechtensteinWhat Liechtenstein's Due Diligence Act requires: identification, beneficial owners, business profile, monitoring and reporting suspicions to the FIU.
• Building the risk profile of a business relationshipStep by step to a robust risk profile: business profile, risk factors, weighting, reasoning and the triggers for a reassessment in a family office.