Fatf fsrbs expectations from public and private sector

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FATF / FSRBs 4th round of Assessments - expectations from public and private sector Richard Berkhout Policy Analyst FATF Secretariat 1

Overview       

Why assessments Assessment methodology Risk and context Technical compliance Effectiveness compliance & ratings Recommendations to countries Expectations

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Why assessments Assess Compliance with the FATF Standards:  Highlight risks  Set clear direction for policymakers  Enable peer pressure on countries Peer Review achieved by:  Expert assessors, supported by professional secretariats  Plenary adoption of all Evaluations FINANCIAL ACTION TASK FORCE | GROUPE D’ACTION FINANCIÈRE www.fatf-gafi.org

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Assessment methodology Technical Compliance Assessment

Risk and Context

Integrated conclusions and recommendations

Effectiveness Assessment

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Risk and Context  ML and TF Risks – Threats, – Vulnerabilities – Consequences

 Contextual Factors: – Country situation (economic and financial) – Structural elements – Other contextual factors FINANCIAL ACTION TASK FORCE | GROUPE D’ACTION FINANCIÈRE www.fatf-gafi.org

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Technical compliance Specific requirements of the FATF Recommendations:  Laws, Regulations, enforceable means  Institutions (powers and procedures)  Ratings: – – – –

Compliant Largely compliant Partially compliance Non-compliant

no shortcomings only minor shortcomings moderate shortcomings major shortcomings

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Effectiveness compliance

“Very pretty, Colonel, very pretty.

But can they fight?”

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Are outcomes achieved – ratings:  High level of effectiveness

– The Immediate Outcome is achieved to a very large extent, minor improvements needed.

 Substantial level of effectiveness

– The Immediate Outcome is achieved to a large extent, moderate improvements needed.

 Moderate level of effectiveness

– The Immediate Outcome is achieved to some extent, major improvements needed.

 Low level of effectiveness

– The Immediate Outcome is not achieved or achieved to a negligible extent, fundamental improvements needed.

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Recommendations to countries Recommendations on how a country can improve its AML/CFT system:  Integrate effectiveness and technical compliance  Prioritised, based on the country’s risks and weaknesses, and quick-wins  Set clear goals, with discretion about how to meet them 11-Apr-14

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Expectations of public sector  Achieve effective compliance with the FATF Recommendations – Self assessment?

– National coordination body? With private sector?

– Do you know when you will be assessed?

– Draft mutual evaluation questionnaire?

– National risk assessment(s)? Do you know your risks?

11-Apr-14

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Expectations of private sector  Comply with … national legal framework(s) or FATF Recommendations?  Look ahead: what is required and what will be required soon?  What legal framework to comply with (country x or y)?  Engage with public sector 11-Apr-14

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For more information: FATF public website www.fatf-gafi.org

11-Apr-14

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