Highlights from the Task Force Response to the FATF Consultation Paper
September 23rd, 2011
September 23rd, 2011
The Financial Action Task Force (FATF) is a global, instrumental inter-governmental group that develops and promotes policies battle money laundering and terrorist financing. The FATF issues a set of recommendations to outline criminal justice and regulatory measures that countries should implement to effectively fight these problems.
This set includes the FATF’s 40 Recommendations, which are a detailed list of anti-money laundering (AML) measures and span the criminal justice system, law enforcement, the financial system, financial regulation, and international co-operation. Additionally, the FATF has promulgated 9 Special Recommendations, which specifically address terrorist financing. Together the 40+9 Recommendations form the international standard for combating money laundering and terrorist financing. There are currently 36 members of the FATF, which includes 34 jurisdictions and 2 regional organizations, and over 180 countries and jurisdictions have endorsed the FATF’s 40+9 Recommendations.
The FATF is currently conducting a review of these Recommendations in three separate stages to ensure they are up to date and relevant. They also want to ensure that Recommendations reflect the most current global conditions and benefit from lessons many countries have learned in the process of implementing and evaluating them. While the FATF provides a global standard on these issues, it recognizes there is always room for improvement, particularly through discussion with organizations, governments, and individuals who understand these complex, dynamic issues and have thought out coherent and effective solutions. It is pleasing the FATF has encouraged a public debate and has welcomed members of civil society to participate.
The Task Force on Financial Integrity and Economic Development (in other words, the organization whose blog you are now reading) has responded to the first two stages of this review with submissions of its own suggestions for improvement of the Recommendations. In this post, I’ll review highlights of the Task Force’s second submission in layman’s terms. If you are interested in reading the full, technical submission, follow this link. The Task Force recommends that FATF:
There’s much more to this document. What I’ve described above is just a selection of the many common sense and important recommendations that the Task Force has suggested to the FATF. Moreover, the document goes into significantly more detail on each of these recommendations; a level of detail I do not have the space to pursue in this forum. If you are at all interested in this topic, I encourage you to read the Task Force’s submission. And, of course, I hope the FATF pays close attention.