FATF UNINTENDED CONSEQUENCES STUDY

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.

https://rusi.org/explore-our-research/publications/commentary/good-intentions-fatf-faces-its-own-unintended-consequences

https://www.fatf-gafi.org/publications/financialinclusionandnpoissues/documents/unintended-consequences-project.html

https://www.trtworld.com/business/how-fatf-has-been-misused-for-political-purposes-around-the-world-48951

Meanwhile –

SPECIAL REPORT: HOW A LITTLE-KNOWN G7 TASK FORCE UNWITTINGLY HELPS GOVERNMENTS TARGET CRITICS

On 5 August, Reuters produced this report illustrating the problem.

https://www.reuters.com/business/finance/how-little-known-g7-task-force-unwittingly-helps-governments-target-critics-2021-08-05/?rpc=401&

Any modest contributions for my time and ongoing expenses are welcomed!  I have a page where you can do so, and where contributions start as low as $3, at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s