40 FATF 40 Recommendations
27

Recommendation 27 · Group F · Powers of Competent Authorities

Former: R.29

Powers of supervisors

Recommendation 27 ensures that AML/CFT supervisors have adequate legal powers to perform their functions: monitor compliance, conduct on-site inspections, compel the production of any information relevant to AML/CFT (including beneficial ownership data), and impose financial, administrative or other sanctions for non-compliance — including the power to remove officers, restrict business and revoke licences.

Who must comply?

  • AML/CFT supervisors of financial institutions
  • DNFBP supervisors (specialised or integrated)
  • Sectoral regulators with delegated AML/CFT functions
  • Self-regulatory bodies (SRBs) when authorised to supervise their professions

Key requirements

  1. 1

    Power to supervise and monitor compliance

    Supervisors must have the legal authority to monitor compliance with AML/CFT requirements — both on-site (inspections, audits) and off-site (review of filings, returns, attestations).

  2. 2

    Power to compel production of information

    Supervisors must be able to compel financial institutions and DNFBPs to produce any information relevant to monitoring compliance — including customer files, transaction records, internal audits, training logs and beneficial-ownership data — without the need for court orders in routine cases.

  3. 3

    Power to conduct on-site inspections

    Supervisors must have the right to conduct on-site inspections without prior warning where appropriate, including access to all premises, systems and records.

  4. 4

    Power to impose sanctions

    Supervisors must have authority to impose effective, proportionate and dissuasive sanctions for non-compliance — including financial penalties, public warnings, restrictions on business, removal of officers, suspensions and revocation of licences.

  5. 5

    Adequate independence and resources

    Supervisors must have operational independence, adequate human and technical resources, and the ability to act without undue political or industry influence.

Practical example

Example: SAT inspection with public force after 2026 reform

Following the LFPIORPI Regulation reform (DOF 27/03/2026), the SAT can request public-force assistance to enter premises of vulnerable activities that obstruct an inspection — a meaningful escalation. Combined with the 2026 reform's Art. 12 Bis (mandatory annual audit) and Art. 7 Bis (24-hour aviso for attempted operations), the SAT now has visibility tools that match Recommendation 27's standard.

How Mexico implements it

Country-specific section in Spanish — Mexican regulatory references (LFPIORPI, CNBV, SAT, UIF).

México distribuye facultades supervisoras ALA/CFT entre varias autoridades:

CNBV — Sector financiero

Tiene facultades plenas: visitas de inspección, requerimientos de información, sanciones administrativas (multas, suspensiones, revocaciones), recomendaciones a accionistas y aprobaciones de cambios de control accionario.

SAT — Actividades vulnerables

Tiene facultades de visita, requerimiento de información y sanción. Con la reforma 2026, suma fuerza pública en casos de obstrucción y la facultad de exigir auditoría externa anual.

UIF — Inteligencia y coordinación

No supervisa directamente, pero recibe los reportes y coordina con CNBV y SAT para análisis. Vía Egmont Group, comparte con UIFs internacionales.

Procuradurías y FGR — Acción penal

Cuando un incumplimiento administrativo deriva en sospecha de delito (Art. 400 Bis CPF), la FGR toma el caso. La R.27 se complementa con la R.30 sobre responsabilidades de orden público.

Milestones

  1. 2003

    Original Recommendation 29 on supervisor powers

  2. 2012

    Renumbered as Recommendation 27

  3. 2025

    October 2025 update reinforces information-compulsion powers

Related Recommendations

Other Recommendations in Group F — Powers of Competent Authorities

26 R.26 Regulation of financial institutions 28 R.28 Regulation of DNFBPs 29 R.29 Financial intelligence units (FIUs) 30 R.30 Law enforcement responsibilities 31 R.31 Law enforcement powers 32 R.32 Cash couriers 33 R.33 Statistics 34 R.34 Guidance & feedback 35 R.35 Sanctions

Official citation

FATF (2012-2025), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, Recommendation 27, FATF, Paris, France. Last updated October 2025.

Read the official text on fatf-gafi.org