FATF ¦ R.30 Res­pon­si­bil­i­ties of Law En­force­ment and In­vesti­ga­tive Au­thorities

Recommendation 30: Closing the Gap Between Predicate Crimes and Asset Recovery

Recommendation 30 requires countries to designate competent law enforcement authorities to lead investigations into money laundering and terrorist financing within their national anti–money laundering and counter‑terrorist financing (AML/CFT) frameworks. These authorities must be empowered to carry out financial investigations that run alongside or in parallel with criminal investigations into predicate offences, and to take rapid action to identify, trace, freeze and seize criminal assets or assets of corresponding value. The standard also expects use of multi‑disciplinary teams and international cooperation where necessary.

What a financial investigation must achieve

A financial investigation is not merely an accounting exercise; it is an investigative tool designed to map criminal networks, reveal the scale of criminality, and locate proceeds and instruments of crime. Its objectives are threefold:

1. to identify the scope and connections of criminal activity;
2. to trace and preserve criminal property and assets of equivalent value; and
3. to obtain financial evidence that can support prosecution and confiscation.

Effective financial investigations therefore require specialised skills in following complex money flows, analysing financial intelligence, and turning financial records into admissible evidence.

Parallel financial investigations and institutional responsibilities

Recommendation 30 emphasises the importance of conducting parallel financial investigations — that is, carrying out financial enquiries at the same time as traditional investigations into predicate offences, money laundering or terrorist financing. Law enforcement investigators working on predicate offences should either be authorised to investigate related laundering or financing offences themselves, or have clear and fast referral mechanisms to specialist financial investigators. This reduces gaps between detecting predicate criminality and pursuing the associated financial dimensions, thereby increasing the chances of disrupting criminal operations and securing assets.

Flexibility to support operational tactics

To enable sophisticated operational techniques such as controlled deliveries and undercover operations, authorities may need legal powers to postpone or waive arrests and immediate seizures temporarily, so that further participants can be identified and evidence can be gathered. Recommendation 30 therefore encourages countries to consider legislative and procedural measures that permit such operational flexibility while maintaining appropriate safeguards for rights and oversight.

Bastian Schwind-Wagner_Follow

"Recommendation 30 reinforces that financial investigations are central to effective AML/CFT responses, requiring designated authorities with clear mandates and powers. Prioritising parallel financial investigations, asset tracing, and operational flexibility enhances the likelihood of disrupting criminal networks and recovering illicit proceeds.

Successful implementation depends on resourcing, specialist skills, multi‑disciplinary collaboration and robust international cooperation. Legal and procedural frameworks should balance operational needs with safeguards for rights and oversight to ensure investigations are effective and legitimate."

Designating competent authorities beyond traditional police

Recommendation 30 recognises that specialist bodies other than conventional police forces — such as financial investigation units, anti‑corruption enforcement agencies, or prosecutors with dedicated asset recovery teams — can carry out financial investigations. Where these bodies exercise responsibilities covered by Recommendation 30, they should be formally designated and given the powers to identify, trace, freeze and seize criminal property or property of corresponding value. Anti‑corruption agencies that investigate corruption‑related predicate offences should similarly have enforcement powers to pursue associated laundering and financing offences.

Multi‑disciplinary teams and resource standards

Complex financial investigations benefit from multi‑disciplinary approaches that bring together law enforcement, prosecutors, financial intelligence units, tax authorities, and other specialists. Countries are encouraged to use permanent or temporary multi‑disciplinary teams to tackle sophisticated money flows and asset recovery. Importantly, authorities charged with these tasks must be adequately resourced — financially, humanly and technically — and staffed by personnel who meet high standards of integrity, professionalism and confidentiality. Training and career development are critical to maintain the expertise required for modern financial investigations.

International cooperation and cross‑border investigations

Money laundering and terrorist financing often cross borders. Recommendation 30 requires that countries enable cooperative investigations with competent authorities abroad. This includes sharing intelligence, coordinating parallel investigations, and using mutual legal assistance and other tools to trace and freeze assets located in foreign jurisdictions. Proactive international collaboration increases the likelihood of successful prosecutions and asset recovery when predicate offences or proceeds originate outside national borders.

Operational and legal implications for practitioners

For operational leaders and policymakers, Recommendation 30 implies several practical steps. Authorities must clearly define mandates and workflows for financial investigations, set up mechanisms for parallel or referred investigations, and create protocols for asset tracing and preservation. Legal frameworks should be reviewed to permit necessary investigative techniques while safeguarding due process. Investment in training, analytical tools, secure information sharing platforms and case management systems is essential to convert financial intelligence into caseable evidence. Finally, establishing trusted channels for international cooperation should be treated as a strategic priority.

Conclusion

Recommendation 30 places the financial dimensions of crime at the core of effective AML/CFT practice. By designating competent authorities, encouraging proactive parallel financial investigations, enabling operational flexibility, and promoting multi‑disciplinary and international cooperation, the standard aims to ensure that criminal finances are identified, preserved and prosecuted with the same priority as predicate offences. Meeting these requirements strengthens the ability of states to disrupt criminal enterprises, recover illicit assets and reduce the profitability of serious crime and terrorist financing.

Dive deeper

• FATF ¦ The FATF Recommendations ¦ Link
• FATF ¦ Luxembourg’s measures to combat money laundering and terrorist financing ¦ Link