Which assessments are involved in the processes of mutual evaluation and follow-up by the FATF?
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A. B. C. D.B
https://www.fatf-gafi.org/publications/mutualevaluations/more/more-about-mutual-evaluations.html?hf=10&b=0&s=desc(fatf_releasedate)In the processes of mutual evaluation and follow-up by the Financial Action Task Force (FATF), the assessments involved include technical compliance assessments and effectiveness assessments.
Option B: Technical compliance assessments and effectiveness assessments
Technical Compliance Assessments: These assessments focus on evaluating whether a country has implemented the FATF's recommendations and standards effectively. They examine whether the country has established the necessary legal and institutional frameworks to combat money laundering (ML), terrorist financing (TF), and proliferation financing (PF). The assessment examines the adequacy and effectiveness of the country's laws, regulations, and other measures in addressing these risks. It assesses the country's compliance with the FATF's 40 Recommendations and the nine Special Recommendations on TF and PF.
Effectiveness Assessments: These assessments focus on evaluating the practical implementation and effectiveness of the measures taken by the country to combat ML, TF, and PF. They examine the extent to which the country's laws, regulations, and other measures are being effectively enforced and implemented. The effectiveness assessments also evaluate the country's ability to identify, investigate, and prosecute ML, TF, and PF cases. They consider the country's overall risk management and the outcomes achieved in terms of deterrence and disruption of illicit financial activities.
The FATF conducts mutual evaluations and follow-up assessments to assess how effectively countries are implementing anti-money laundering and counter-terrorist financing measures. Mutual evaluations involve a thorough review of a country's legal and institutional frameworks, as well as its practical implementation of measures to combat ML, TF, and PF. The evaluation process involves an in-depth analysis of various areas, including criminalization of ML and TF, customer due diligence requirements, supervision of financial institutions, international cooperation, and the confiscation and recovery of assets.
During the follow-up process, the FATF monitors the progress made by countries in addressing the deficiencies identified during the mutual evaluation. The FATF provides recommendations and guidance to assist countries in strengthening their AML/CFT frameworks and tracks their progress. The follow-up assessments focus on whether the countries have taken appropriate measures to address the identified deficiencies and enhance their AML/CFT systems.
In summary, the assessments involved in the processes of mutual evaluation and follow-up by the FATF are technical compliance assessments and effectiveness assessments. These assessments evaluate a country's compliance with the FATF's recommendations and standards, as well as the practical implementation and effectiveness of the measures taken to combat ML, TF, and PF.