FATF REPORT TO G20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS
On 16th March, FATF published this report which sets out FATF’s ongoing work to fight money laundering and terrorist financing, and in particular in the following areas:
- Strengthening its institutional basis, governance and capacity
- Countering the financing of terrorism
- Countering the financing of proliferation
- Improving transparency and the availability of beneficial ownership information
- Supporting financial inclusion and access to regulated financial services
- Bank de-risking and the impact on remittances
- Improving the effectiveness of the criminal justice system: FATF engagement with judges and prosecutors
- FinTech, RegTech & virtual currencies: risks and opportunities
The report provides an overview of the FATF’s recent and future work in these areas.
FATF BUSINESS BULLETIN (MARCH 2018)
Also on 16th March, FATF issued a 2-page bulletin providing a brief update on the outcomes of the FATF Plenary held in February, which include –
- FATF has updated its guidance on the implementation of financial provisions of UN Security Council Resolutions to counter the proliferation of WMD. This guidance will help public and private sector understand and implement the financial provisions of UNSCR on proliferation and prevent sanctions evasion.
- FATF adopted revisions to Recommendation 2 to emphasise that co-operation and co-ordination should include co-ordination with the relevant authorities to ensure the compatibility of AML/CFT requirements with Data Protection and Privacy (DPP) rules and other similar provisions (e.g. data security / localisation). Improving the compatibility of AML/CFT and DPP rules will facilitate exchange of information between the public and private sector.
- FATF adopted changes to the Methodology for Recommendation 18, which clarify the requirements on sharing information related to unusual or suspicious transactions within financial groups. FATF also adopted changes to the Methodology for Recommendation 21 to clarify the interaction of these requirements with tipping off provisions. Under Recommendation 23, these requirements will also apply to Dealers in Non-Financial Businesses and Professions (DNFBP).
- FATF has developed a new counter-terrorist financing (CTF) operational plan which will focus its future efforts in responding to the current terrorist financing risks and strengthening the global CTF standards. For an overview of the recent outcomes achieved as part of the 2016 operational plan.
- The Wolfsberg Group presented to plenary on its recently published Correspondent Banking Due Diligence Questionnaire, which FATF (in a joint statement with BCBS, CPMI and FSB) has welcomed as one of the industry initiatives that will help to address the decline in the number of correspondent banking relationships by facilitating due diligence processes.
- FATF considered a report on the AML/CFT risks associated with virtual currencies and the regulatory measures being taken in different countries. The improved understanding of the misuse and risk of virtual currencies will lead to FATF undertaking additional work streams.
- FATF launched a new Fintech/Regtech platform to share government Fintech initiatives and developments
- The upcoming Private Sector Consultative Forum (PSCF) will take place on 23rd/24th April at the UNODC in Vienna. Topics for discussion include: AML/CFT global priorities for 2018, Fintech/Regtech, and de-risking. Participation by invitation only.