This article examines the legal nature of the Financial Action Task Force (FATF) Recommendations as a source of international law in the context of combating money laundering and terrorist financing. Despite the originally non‑binding, recommendatory character of these documents, they have received near‑universal recognition by states. Consequently, it can be argued that the FATF Recommendations are gradually acquiring the status of customary international law norms. Although FATF lacks a formal international treaty and a founding statute, it exhibits several essential features typical of international organizations and plays a crucial role in the global anti‑money laundering and counter‑terrorism financing (AML/CFT) system. The mechanisms established by FATF and FATF‑style regional bodies—such as regular mutual evaluations and the application of sanctions by member states against non‑compliant countries—effectively transform the Recommendations into de facto binding obligations. The purpose of this study is to determine the legal nature of the FATF Recommendations as elements of international financial regulatory law, taking into account the specific legal status of FATF and its regional bodies, as well as analyzing the process through which these soft law norms transform into rules bearing characteristics of customary international law. The findings demonstrate that, despite the absence of a formal international treaty and classic legal personality, FATF operates as a global coordination mechanism. Through mutual evaluations, sanction pressure, and continuous monitoring, the FATF Recommendations are perceived by states as legally binding and are effectively integrated into national legal systems, thereby acquiring features of customary international norms. The article explores the conditions under which the FATF Recommendations become obligatory for domestic legal frameworks, emphasizing the role of the subjective element (opinio juris) and state practice in this transformation. Based on an analysis of international legal norms and national experiences, conclusions are drawn regarding the position of the FATF Recommendations within international law and their influence on national legal systems. Key aspects of FATF’s legal status, the mechanisms for adoption and implementation of the Recommendations, and the degree of their binding force for states are also discussed.
Klara Minasyan (Thu,) studied this question.