Understanding the new payment methods, their risks, and opportunities authors. In the case of financial institutions, such a risk assessment should take place prior to the launch of the new products, business practices or the use of new or developing technologies. Financial action task force on money laundering wikipedia. Consolidated table of assessment ratings pdf format. For assessing technical compliance with fatf recommendations and. Fatf recommendations 2012, and the methodology for assessing. Risk based approach guidance for legal professionals pdf. As part of her national mltf risk assessment nra, nigeria assessed the money launderingterrorist financing risk in financial inclusion products in nigeria. How to perform a financial institution risk assessment. This page includes examples of published national risk assessments nras and regional risk. The fatf plenary will adopt the revised text of the recommendations in february 2012, and then begin work on revising the assessment methodology and the mutual evaluation and followup processes. Fatf issues new risk assessment guidance, targets ngos. The methodology for assessing compliance with antimoney.
Fatf recommendations and new guidance, and outlines. Fatf recommendations 2012, and the methodology for assessing technical compliance with the fatf recommendations and the effectiveness of money laundering counter financing of anti terrorism amlcft systems the 20 assessment methodology, as amended from time to time. Mutual evaluations financial action task force fatf. The design of a regulatory framework that supports the application of rba. The fatf methodology for assessing compliance with the fatf recommendations and the effectiveness of amlcft systems sets out the evaluation process. Consolidated table of assessment ratings pdf format pdf. This is in compliance with recommendation 1 of the financial action task force fatf standards. Fatf methodology for assessing compliance with the fatf.
This detailed assessment report for panama on the fatf recommendations for antimoney laundering and combating the financing of terrorism was prepared by a team of the international monetary fund using the assessment methodology adopted by the fatf in february 2004 and endorsed by the executive board of the imf in march 2004. Please set out if, and if so, how, you used the 2007. New paragraph and footnote to provide guidance on how to assess requirements relating to virtual. Support for developing or adapting a tailored risk assessment methodology. National money laundering and terrorist financing risk. Methodology for assessing technical compliance with the fatf recommendations and the effectiveness of amlcft systems. Financial action task force fatf, fatf guidance on counter proliferation financing. Public disclosure authorized recent fatf action amlcft. The financial action task force fatf the financial action task force fatf is an independent intergovernmental body that develops and promotes. A national risk assessment is required in order to understand and respond to the amlcft threats and vulnerability.
The financial action task force on money laundering is composed of 35 member countries and. Methodology for assessing compliance with the fatf 40. Antimoney laundering financial secrecy index tax justice. Further to this, when new products and services are added, the risks should be evaluated prior to implementation to ensure. Future risk assessments may be able to seek new or alternative.
Does the financial action task force fatf help or hinder. Mobile money methodology for assessing money laundering and terrorist financing risk table of contents 0. A regulatory framework that supports the application of rba. Understanding the new payment methods, their risks, and. Hong kong has made reference to the fatf guidance on national money laundering and terrorist financing risk assessment and adopted the world bank tool in conducting its first territorywide risk assessment. Fatf recommendations 2012, and the methodology for assessing compliance with the fatf recommendations and the effectiveness of amlcft systems 20, as amended from time to time. Country risk is the assessment of a countrys or jurisdictions vulnerability to money laundering, terrorism financing, and targeted financial sanctions. Paris, 22 february 20 the financial action task forces new methodology for assessing technical compliance with the fatf recommendations and the effectiveness of amlcft systems sets out how the fatf will determine whether a country is sufficiently compliant with the 2012 fatf standards and whether its amlcft system is working effectively. October 31, 2001, the fatf issued a new set of guidelines and a set of nine. In 2007, the financial action task force fatf had introduced a guidance called riskbased approach to combating money laundering and terrorist financing outlining the importance of implementing the riskbased approach as part of the aml program in banking and other industries. Country risk methodology and ratings update effective 26. The financial action task force fatf is an independent intergovernmental body that develops and promotes. The emphasis of any assessment is on effectiveness. A new assessment of the terrorist financing risk, unlike the previous one, was made by using the world bank methodology.
Fatf methodology for assessing technical compliance with the fatf recommendations and the. Does the financial action task force fatf help or hinder financial inclusion. To reflect new ratings in your aml programs you will need rollforward your program. Applying a riskbased approach rba relevant persons are required to apply an approach to their antimoney laundering, counterterrorist financing compliance collectively referred to. Examining fatfs recommendation on risk based approach.
Fatfs assessment methodology for both old and new recommendations. For assessing technical compliance with fatf recommendations and effectiveness of aml cft systems. Assessments focus on two areas, effectiveness and technical compliance. A financial institution risk assessment is a measure of the potential threats present at, and for, your financial institution. A country must demonstrate that, in the context of the risks it is. This first section is an introduction, giving an overview of the assessment methodology. Fatf s new recommendations do hold the potential to bring many more people. Prepaid cards, epayments, b2b, mobile banking, mobile payment services, virtual currencies. This national risk assessment uses a new model based on int ernational guidance 2, where risk is a function of. Methodology 20 pdf, 2,650kb procedures for the fatf fourth round of amlcft mutual evaluations pdf, 1,751kb. Hong kong therefore recognises the need to conduct the risk assessment in response to these developments. Report on the outcome of the fatf plenary meeting and. Riskbased approach guidance for the banking sector fatf. Finally, in response to recent developments that had an impact on fund.
In doing so, this paper seeks to answer the following questions. Fatf 202019, methodology for assessing compliance with the fatf. This methodology is designed to assist assessors when they are conducting an assessment of a. Mutual evaluations asiapacific group on money laundering. The financial action task force fatf updated the list of jurisdictions under increased monitoring on 21 feb 2020. Recently, acams today had the opportunity to interview the team at the core of the acams risk assessment methodology.
Country risk assessment methodology the following criteria is used to apply each country with their risk ratings. Antimoney laundering and combating the financing of. The views expressed in this document are those of the fatf and do not necessarily reflect the views of the government. Fatf revised the assessment methodology used to assess a countrys compliance with the fatf recommendations which are vitally important in determining which countries get added to or removed from public lists fatf maintains of noncompliant jurisdictions, incorporating for the first time assessment of the effectiveness of a given countrys. The fatf recommendations, the international antimoney laundering and combating the financing of terrorism and proliferation amlcft standards, and the fatf methodology to assess the effectiveness of amlcft systems.
Financial action task force fatf, the international body dedicated to counter money laundering. A mutual evaluation report provides an indepth description and analysis of a countrys system for preventing. Fatf provides five high level principles that need to be in considered. Pushback on new restrictions not based on risk assessment not targeted not proportionate conduct shadow risk assessment of npo sector using relevant methodology experts needed engage with authorities on upcoming evaluation and follow up engage with fsrb fatf directly on upcoming evaluation and follow up strategy options. Moneylaundering, and new guidance was issued on prepaid cards, mobile payments and internet based payment services. The fatf has updated its assessment methodology for recommendation 8 and immediate outcome 10 to bring it into line with those revisions. We look forward to carrying out this revision work in close collaboration with associate members and completing it by early 20. Methodology for assessing technical compliance with the fatf. Fatf issues new risk assessment guidance, targets ngos gauging the effectiveness of the financial action task forces policy and assessment mechanisms for laws to prevent terrorist financing and money laundering was the central question of a speech delivered by. Procedures for the fatf fourth round of amlcft mutual.
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