Chapter 2

Question 1

Financial Action Task Force (FATF)

What is the FATF ?

Answer 1

• Vanguard of AML guidance to governmental bodies worldwide
• Assessor of countries’ compliance to FATF recommendations
• Does not have power to implement fines. But uses peer pressure, name and shame via greylisting
• Standard Setting
• Identifying money laundering and terrorist financing threats

Question 2

Financial Action Task Force (FATF)

FATF Evaluation critertia

(11 Criteria)

Answer 2

1. If Money Laundering Risks are understood and actions to mitigate them are taken
2. If International Cooperation provides information to use against criminals
3. Supervisory authorities regulating financial institutions and non-bank financial institutions
4. If Financial Institutions and NBfinancial institutions apply preventative measures and report suspicious transactions
5. If Legal Persons are not misused for ML, and checks if UBO information is available to authorities
6. If Financial Intelligence Information is used by authorities in money laundering investigations
7. If ML offences are investigated and criminally prosecuted
8. If the proceeds of crime are confiscated
9. If Terrorist Financing is Investigated and criminally prosecuted
10. If Terrorist Organisations are prevented from raising, moving, and using money
11. If Organisations involved in weapons of mass destruction are prevented from raising, moving or using money.