Page 39 - Banking Finance April 2022

ARTICLE

promoting the effective implementation of the FATF Secretary, whom the Plenary appoints at the proposal
recommendations in their member jurisdictions. Asia/Pacific of the President and the Secretariat staff.
group on money Laundering (APG) and Eurasian Group on Y The Secretariat service is provided by the OECD and the
combating money laundering and financing of terrorism ( secretariat is located at the OECD headquarters in Paris.
EAG ) are examples of FATF Associate Members.
Objectives and functions
Focusing on participation of International Y To set standards of legal regulatory and operational
institutions in the FATF measures for combating money laundering terrorist
financing and other related threats to the integrity of
International Monetary Fund and the World Bank play a the international financial system.
special role in the development, promotion and
dissemination of measures for combating money laundering Y To promote effective implementation of the FATF
and the financing of terrorism and other related threats. recommendations globally.
The FATF works closely with the United Nations and the Y To monitor countries progress in implementing the FATF
Egmont group of Financial Intelligence Units. The Egmont recommendations.
group is a united body of 166 financial intelligence units Y To review money laundering and terrorist financing
based in Torrento, Canada.
techniques and counter measures.
Observers
FATF : 40 + 9 recommendations
The decision as to whether a body may participate as an Y In 1990, the FATF issued a report containing a set of 40
observer to the FATF is taken by the plenary. Observer have
recommendations.
a stated role related to the combating money laundering
and the financing of terrorism and proliferation. Y To provide a comprehensive plan of action needed to
fight against money laundering. In 2001 the FATF issued

Organisational structure of the institution the eight special recommendations to deal with the
issue of tourist financing.
The Plenary
Y Three years later a 9th recommendation was added
Y The FATF plenary consists of member jurisdiction and together they are known as the 40 + 9
organisations.
recommendations. They have been expanded to deal
with the new threats such as the financing of
The plenary is the decision making body of the FATF. It's
decisions are taken by consensus. The President convenes proliferation of weapons of mass destruction and to be
at least three plenary meeting every calendar year, normally clear on transparency and tougher on corruption FATF
has outlined the criteria for evaluating whether its
in February, June and October.
standards are achieved in participating countries.
The President and a Vice-President
Y The President is appointed by the plenary from amongst Focus on FATF's list, the black list and
it's members for a term of two years non- renewable. grey list.
Y The Vice-Principal is also appointed for two years, who Black List : High risk jurisdictions subject to a call for action
assists the President in carrying out its responsibilities. have strategic deficiencies in their regimes to counter money
laundering, terrorist financing and financing of proliferation.
The Steering Group
Y The FATF, steering group is an advisory and is chaired This list is often externally referred to as the blacklist. The
by the President. first FATF blacklist was issued in 2000 with an initial list of 15
countries as of January 2021, Democratic People's Republic
The Secretariat of Korea or known as North Korea and Iran are the only two
Y The FATF Secretariat is composed of an Executive countries identified as high risks jurisdictions by FATF.

BANKING FINANCE | APRIL | 2022 | 39