Principles for FATF-Style Regional Body (FSRB) Update | CAMS Exam

Principles for a FATF-Style Regional Body (FSRB) Update

Prev Question Next Question

Question

Which principles should be included in a FATF-Style Regional Body (FSRB) update? (Choose two.)

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

AD

https://www.fatf-gafi.org/media/fatf/documents/High-Level%20Principles%20and%20Objectives%20for%20FATF%20and%20FSRBs.pdf

FATF-Style Regional Bodies (FSRBs) are intergovernmental organizations that are established to promote the implementation of the FATF Recommendations in their respective regions. FSRBs work closely with their member countries to identify areas of improvement in the implementation of anti-money laundering/countering the financing of terrorism (AML/CFT) measures.

To answer the question, the two principles that should be included in an FSRB update are:

  1. Establish AML/CFT standards and typologies: FSRBs should establish AML/CFT standards and typologies that are consistent with the FATF Recommendations and tailored to the specific needs of the region. These standards and typologies should be updated regularly to ensure that they remain relevant and effective in addressing the evolving threats posed by money laundering and terrorist financing.

  2. Identify jurisdictions with weak AML/CFT regimes: FSRBs should monitor and identify jurisdictions within their region that have weak AML/CFT regimes. This is an important step in addressing the global nature of money laundering and terrorist financing. By identifying jurisdictions that are vulnerable to these illicit activities, FSRBs can help member countries to better target their efforts and resources in the fight against money laundering and terrorist financing.

Therefore, the correct answers are D. Establish AML/CFT standards and typologies and C. Identify jurisdictions with weak AML/CFT regimes.

The other options are also important tasks that FSRBs perform, but they are not the two principles that should be included in an FSRB update as per the FATF guidelines.

A. Issue country-specific Mutual Evaluation reports: FSRBs conduct mutual evaluations of their member countries to assess their level of compliance with the FATF Recommendations. These evaluations are an important tool in identifying areas of weakness and providing guidance on how to address them. However, issuing country-specific mutual evaluation reports is not a principle that should be included in an FSRB update.

B. Address AML/CFT technical assistance of individual members: FSRBs provide technical assistance and training to their member countries to support their efforts in implementing the FATF Recommendations. However, addressing AML/CFT technical assistance of individual members is not a principle that should be included in an FSRB update.

E. Protect the reputation and standing of FATF: FSRBs work closely with the FATF to ensure that their standards and typologies are consistent with the FATF Recommendations. However, protecting the reputation and standing of FATF is not a principle that should be included in an FSRB update.