11/19/2018

FATF Methodology for assessing compliance and the effectiveness of AML/CFT systems

Date: 4/16/2018 - Created: 4/16/2018
Mock FATF Methodology for assessing compliance and the effectiveness of AML/CFT systems

 

 

 

 

 

FATF conducts mutual evaluations of its members’ levels of implementation of the FATF Recommendations on an ongoing basis. These are peer reviews, where members from different countries assess another country. The FATF Methodology for assessing compliance with the FATF Recommendations and the effectiveness of AML/CFT systems sets out the evaluation process.  

Assessments focus on two areas, effectiveness and technical compliance.

I. The emphasis of any assessment is on effectiveness.  A country must demonstrate that, in the context of the risks it is exposed to, it has an effective framework to protect the financial system from abuse.   The assessment team will look at 11 key areas, or immediate outcomes, to determine the level of effectiveness of a country's efforts.

II. The assessment also looks at whether a country has met all the technical requirements of each of the 40 FATF Recommendations in its laws, regulations and other legal instruments to combat money laundering, and the financing of terrorism and proliferation.  

A mutual evaluation report provides an in-depth description and analysis of a country’s system for preventing criminal abuse of the financial system as well as focused recommendations to the country to further strengthen its system.  

The Methodology will be used by the FATF, the FATF-Style Regional Bodies (FSRBs) and other assessment bodies such as the IMF and the World Bank.

Download here 

http://www.fatf-gafi.org/media/fatf/documents/methodology/FATF%20Methodology%2022%20Feb%202013.pdf

 

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