On 5 August, a Commentary from RUSI says that the study will point to necessary reforms that the watchdog will be unwilling to undertake. The aim of the study is to examine and mitigate the unintended consequences stemming from the incorrect implementation (purposefully or otherwise) of its anti-financial crime standards. This seems to be often where implementation of the standards deviates from the FATF’s insistence on a risk-based approach, leading to circumstances where overly restrictive regulations are enacted under the pretence of combatting illicit finance. The Commentary concludes that, if the project is to be credible it is almost certain to create its own unintended consequences, confronting the FATF with remedial steps which, in its current incarnation, it will be unwilling or unable to take; and that failing to take the radical action this project is likely to demand will reinforce the arguments of those that already question the FATF’s legitimacy.
SPECIAL REPORT: HOW A LITTLE-KNOWN G7 TASK FORCE UNWITTINGLY HELPS GOVERNMENTS TARGET CRITICS
On 5 August, Reuters produced this report illustrating the problem.
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