FINANCIAL ACTION TASK FORCE GROUPE D’ACTION FINANCIÈRE
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
FINANCIAL ACTION TASK FORCE | GROUPE D’ACTION FINANCIÈRE www.fatf-gafi.org
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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?” FINANCIAL ACTION TASK FORCE | GROUPE D’ACTION FINANCIÈRE www.fatf-gafi.org
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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
FINANCIAL ACTION TASK FORCE | GROUPE D’ACTION FINANCIÈRE www.fatf-gafi.org
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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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FINANCIAL ACTION TASK FORCE GROUPE D’ACTION FINANCIÈRE
For more information: FATF public website www.fatf-gafi.org
11-Apr-14
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