Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What does FATF Recommendation 3 enable authorities to do?

1. Facilitate rapid banking transactions

2. Freeze, seize, and confiscate laundered property

3. Encourage investment in high-risk markets

4. Increase the number of financial audits performed

The correct answer is: Freeze, seize, and confiscate laundered property

FATF Recommendation 3 is focused on the criminalization of money laundering and empowers authorities to take significant actions against proceeds of crime. Specifically, it allows them to freeze, seize, and confiscate laundered property. The recommendation emphasizes the need for countries to establish comprehensive measures that enable law enforcement to act swiftly to recover assets that have been derived from criminal activities. This is crucial in disrupting the operational capabilities of criminal enterprises and upholding the integrity of the financial system. By having the authority to target these illicit assets, authorities are more effectively able to combat money laundering on a broader scale, thereby diminishing the incentive to engage in such illegal activities. This underscores the importance of cooperation among national and international jurisdictions to enhance asset recovery efforts.