Which of the below statements are supported by the Financial Action Task Force 40 Recommendations adopted in 2012?

While regulators do encourage financial institutions to manage risks, the 2012 Recommendations focus more broadly on risk assessment and mitigation rather than solely directing institutions to avoid higher-risk customers. This statement oversimplifies the FATF's guidance.

The FATF Recommendations emphasize the need for due diligence in combating money laundering and terrorist financing; however, they do not suggest that customer privacy regulations should dictate these measures. This choice misrepresents the FATF's stance on prioritizing due diligence over privacy concerns.

This statement accurately reflects the FATF's core guidance, which promotes a risk-based approach as essential for effective financial regulation and the prevention of illicit activities. It is a central tenet of the 2012 Recommendations.

This statement aligns with the FATF Recommendations, which stress the importance of transparency regarding beneficial ownership to prevent misuse of legal entities for money laundering and terrorist financing. Thus, it is correctly supported by the recommendations.

The FATF Recommendations advocate for cooperation and coordination among nations but do not require identical frameworks for investigating and prosecuting crimes. This statement inaccurately represents the flexibility encouraged in the FATF's approach.

This statement is supported by the FATF Recommendations, which highlight the necessity for nations to implement financial sanctions in accordance with international obligations, including those established by the UN Security Council.