FATF (Financial Action Task Force)

“ The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. ” ³

The members of FATF

FATF comprises 34 members and 2 regional organizations which represented two main financial centers. Table 1 contain full list of members FATF.

Associate members

An important role in the global distribution of international standards of fighting against money laundering and terrorist financing, play regional groups established by FATF in different regions of the world.

The main task of these agencies is the implementation of anti-money laundering and terrorist financing in their respective regions, in particular through mutual assessments of national systems of its members in accordance with international standards for combating money laundering (in particular, the FATF 40 +9 Recommendations) and research trends and methods (typologies) of money laundering and terrorist financing, specific to the region.

FATF and regional FATF-style group together form a single international system (network) for the distribution and implementation of international standards to combat money laundering and terrorist financing, as well as monitoring their implementation at the national level

Table 1 members of FATF

Argentina Australia Austria Belgium Brazil Canada China Denmark European Commission

Finland France Germany Greece Gulf Co-operation Council Hong Kong, China Iceland India

Ireland Italy Japan Republic of Korea Luxembourg Mexico Netherlands, Kingdom of New Zealand Norway Portugal

Russian Federation Singapore South Africa Spain Sweden Switzerland Turkey United Kingdom United States

Table 2 Associate members of FATF

Asia/Pacific Group on Money Laundering (APG)

Caribbean Financial Action Task Force (CFATF)

Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)

Eurasian Group (EAG)

Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)

Financial Action Task Force on Money Laundering in South America (GAFISUD)

Inter-Governmental Action Group against Money Laundering in West Africa (GIABA)

Middle East and North Africa Financial Action Task Force (MENAFATF)

Structure

The main decision-making tool is the FATF Plenary meeting, which meets three times a year, as well as the FATF working groups of:

Estimates and implementation;

Typologies;

Counter the financing of terrorism and money laundering;

Review of international cooperation.

FATF pays considerable attention to the cooperation with international organizations such as the IMF, World Bank, United Nations Office on Drugs and Crime. These structures implement the programs aimed at combating money laundering and terrorist financing. One of the main instruments for implementing the FATF recommendations at the national level are the Financial Intelligence Unit (FIU) responsible for the collection and analysis of financial information within each country to identify the flow of funds illegally obtained.

Objectives

“ The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. Starting with its own members, the FATF monitors countries' progress in implementing the FATF Recommendations; reviews money laundering and terrorist financing techniques and counter-measures; and, promotes the adoption and implementation of the FATF Recommendations globally. ” ⁴

FATF 40 +9 Recommendations

FATF documents, in particular the FATF 40 +9 Recommendations, constitute a comprehensive set of organizational and legal measures to establish in each country, an effective regime for combating money laundering and financing of terrorism, complexity and versatility of which is expressed in:

The widest coverage of issues related to the organization of anti-money laundering and terrorist financing on the national and international levels;

close relationship with the international conventions, UN Security Council resolutions, acts of specialized international organizations devoted to AML / CFT;

providing with opportunities for flexibility in the implementation of the FATF 40 +9, and providing recommendations taking into attention national features and the legal system.

The FATF Recommendations do not duplicate or replace the relevant provisions of other international instruments, and, if necessary, complementing them together into a single system of organizational principles and the rule of law, while playing an important role in the codification of the rules and regulations in the field of AML / CFT. In accordance with UN Security Council Resolution number 1617 (2005), 40 +9 FATF Recommendations are binding international standards for States - members of the United Nations.

Unfortunately not all countries ready to cooperate with FATF, therefore FATF was created BLACK LIST.

In this list of countries, countries which don’t cooperate with FATF were divided into three groups.

Into the first group were included countries of high level risk which don’t want to cooperate, and against them global society takes some measures. The second group includes countries with a high level of risk against which the measures are not applied. The third group includes countries whose government is ready to cooperate, but does not have real opportunities for that.

Conclusion

For conclusion I want to note some main points of fighting against money laundering.

For fighting against money laundering was created international organization FATF. The main purpose of creation FATF was: Fighting against money laundering, measures for reducing financing terrorist organizations. The members of FATF are 34 counties all around the world and 2 regional organizations which represented two main financial centers. The main tools of FATF are set of recommendations called 40+9 and FATF Black List.

Exhibit 1.1 Three Steps Strategy

Exhibit 1.2 Four sector model

Exhibit 1.3 Two stage model

Exhibit 2.1 FATF Black list

Дата добавления: 2015-10-31