FATF Updates Recommendation 6 on Targeted Financial Sanctions

The Financial Action Task Force (FATF) has revised Recommendation 6, which governs targeted financial sanctions linked to terrorism and terrorist financing. The change is designed to safeguard the delivery of humanitarian assistance.

Aligning with UN humanitarian exemptions

The revision brings the FATF Standards into line with the humanitarian exemptions set out by the United Nations. The aim is to ensure that sanctions measures do not inadvertently cut off the funds, goods, resources and services that humanitarian work depends on, or the support people need to meet basic human needs.

A new obligation for jurisdictions

Under the revised framework, jurisdictions will be required to give effect to the humanitarian exemptions established in the relevant UN Security Council resolutions. This ensures that the enforcement of sanctions does not obstruct the delivery of humanitarian assistance or the provision of essential services.

Part of a broader effort

The update is part of the FATF's wider effort to reduce the unintended consequences that can arise from implementing AML/CFT measures, while keeping in place effective controls against terrorism and terrorist financing.