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P. 10
Volume 3, Edition 1 Chatterbox 07/04/2020
Part Two: Regulatory Response
In Focus: FATF
United States of America
COVID-19 and measures to
combat illicit financing
Paris, 4 May 2020 - The
COVID-19 pandemic has
led to unprecedented global
challenges, human suffering and
economic disruption. It has also
led to an increase in COVID-
19-related crimes, including
fraud, cybercrime, misdirection
or exploitation of government
funds or international financial
assistance, which is creating
new sources of proceeds for US Treasury’s Strategy 2020 – A Risk-
illicit actors. Using information Based Approach to AML 1. Increasing transparency and
provided to the members of closing gaps in the U.S. AML/CFT legal
the FATF Global Network At the beginning of February 2020 the framework.
on 7 and 23 April, the paper US Department of Treasury published
identifies challenges, good its 2020 Strategy document and 2. Improving the efficiency and
practices and policy responses highlights the risk-based approach as effectiveness of the U.S. AML/CFT
to new money laundering and central to the 2020 Strategy. regulatory and supervisory framework
terrorist financing threats and for financial institutions; and
vulnerabilities arising from the The report classifies vulnerabilities as:
COVID-19 crisis. • Lack of Beneficial Ownership 3. Enhancing current AML/CFT
Information operational capabilities.
The paper highlights emerging • Real Estate
risks and vulnerabilities that • Correspondent Banking These three priorities are supported
could result in criminals finding • Cash by a number of enabling actions,
ways to: • Complicit Professionals including legislative proposals on
• Digital Assets beneficial ownership, expanding
• Bypass customer due diligence AML/CFT obligations to certain
measures; The 2020 Strategy represents a “uncovered” financial institutions and
comprehensive effort by the US supporting responsible AML/CFT
• Increase misuse of online administration to assess key 21st innovation and augmenting public-
financial services and virtual century illicit finance challenges and private partnerships.
assets to move and conceal illicit identify solutions 50 years after the
funds; passage of the first AML/CFT law in The report can be accessed here:
the United States, the Bank Secrecy https://home.treasury.gov/news/
• Exploit economic stimulus Act. The 2020 Strategy articulates press-releases/sm902
measures and insolvency three strategic priorities:
schemes as a means for natural
and legal persons to conceal and
launder illicit proceeds;
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