Cooperation at the Policy Level

Cooperation among Supervisors, FIU, and Law Enforcement

Coordination and cooperation among supervisors, FIU, and law enforcement agencies (investigative and prosecutorial) is required when supervisors intervene in an institution due to serious AML/CFt violations or where the institution itself is involved in ML/tF activities. In such cases, a coordinated approach is required to ensure that suspicious transactions are duly reported to the FIU and, where appropriate, that funds are seized, frozen, or confiscated, among others. this approach requires careful coordination among the supervisor, the FIU, law enforcement, and the prosecution. the degree to which supervisory instruments can complement or substitute for the law enforcement action is based on the particular circumstances of each case and domestic legislation. Where, for example, a prosecutorial agency cannot obtain sufficient evidence to bring a criminal case to trial, it may pass the case to the supervisor for civil or administrative action where noncompliance with AML/CFt requirements has been identified. notwithstanding, a referral to the supervisor can still be made when, under domestic legislation, parallel proceedings can be instituted against an institution or its officers.

COOPERATION AT THE POLICY LEVEL

With all AML/CFT Stakeholders

In line with the FAtF standards stating that jurisdictions should have national cooperation and coordination mechanisms at the policy and operational levels, many jurisdictions have established national cooperation and coordination councils or similar arrangements. these bodies organize and conduct national and sectoral risk assessments, which draw on the contributions of all AML/CFt stakeholders, including supervisors and the private sector. often as a product of national risk assessments, these bodies coordinate the formulation of national and sectoral laws, policies, strategies, and plans of action. Another key element of national cooperation is the development and implementation of national AML/CFt programs by all stakeholders.

With Other Supervisors

In jurisdictions with more than one AML/CFt supervisor, these supervisors also coordinate the development of AML/CFt supervision strategy and policies. this coordination often includes the FIU, whether or not the FIU has an AML/CFt supervision mandate. some jurisdictions establish supervisory committees or similar groups to ensure supervisory cooperation and sharing of information and experience. such cooperation involves a risk-based supervision methodology to ensure harmonized approaches to AML/CFt supervision. Cooperation may also entail coordination for the drafting of legislation, regulations, and guidelines.

With the FIU

Cooperation between the AML/CFt supervisor and the FIU at the policy level can take many forms. one area of cooperation involves the formulation of feedback and guidance to the reporting institutions. such feedback involves ML/tF risks, trends, and methods developed through operational