Actions for Jurisdictions with Strategic Deficiencies
Question
After a FATF mutual evaluation process, which are resulting actions for jurisdictions that are determined to have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing? (Choose two.)
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D. E.CE
https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-june-2021.htmlSure, I'd be happy to provide a detailed explanation.
When the Financial Action Task Force (FATF) conducts a mutual evaluation process on a jurisdiction's regime to counter money laundering, terrorist financing, and proliferation financing, the FATF assesses the effectiveness of that jurisdiction's measures against its international standards.
If a jurisdiction is determined to have strategic deficiencies in its regime to counter money laundering, terrorist financing, and proliferation financing, the FATF will identify those deficiencies in its mutual evaluation report.
After the FATF mutual evaluation process, there are several actions that a jurisdiction can take to address the identified deficiencies. The following are two resulting actions that a jurisdiction may take:
- Demonstrate a high-level commitment to swiftly resolve the identified deficiencies in the FATF mutual evaluation report:
In response to the FATF mutual evaluation report, a jurisdiction can demonstrate a high-level commitment to swiftly resolve the identified deficiencies. This could include developing and implementing an action plan that addresses the deficiencies, allocating sufficient resources to implement the action plan, and establishing a timeline for completing the actions.
- Report to FATF on the implementation of their progress under the enhanced follow-up mechanism:
After the FATF identifies strategic deficiencies in a jurisdiction's regime, the FATF may place the jurisdiction under enhanced follow-up, which involves increased monitoring and reporting by the jurisdiction to the FATF. In response to the FATF mutual evaluation report, the jurisdiction can report to the FATF on the implementation of their progress under the enhanced follow-up mechanism. The reports should demonstrate that the jurisdiction has taken the necessary steps to address the identified deficiencies and has made significant progress in implementing the action plan.
The other answer options are not resulting actions that a jurisdiction can take after a FATF mutual evaluation process:
A. Expect private statements from FATF regarding the level of compliance of the jurisdiction, when insufficient progress is made: This is not a resulting action that a jurisdiction can take after a FATF mutual evaluation process. Rather, it is a possible consequence of insufficient progress being made to address the identified deficiencies.
B. Appeal to FATF for a technical compliance re-rating based on the jurisdiction's own experts criteria: This is not a resulting action that a jurisdiction can take after a FATF mutual evaluation process. The FATF's mutual evaluation process is based on international standards, not a jurisdiction's own criteria.
D. Request FATF for an extension of deadlines in order to provide local awareness on the improvements that are necessary to solve the deficiencies: This is not a resulting action that a jurisdiction can take after a FATF mutual evaluation process. The FATF sets deadlines for implementing the necessary improvements based on the identified deficiencies and action plan developed by the jurisdiction.
In summary, a jurisdiction can demonstrate a high-level commitment to swiftly resolve the identified deficiencies in the FATF mutual evaluation report and report to FATF on the implementation of their progress under the enhanced follow-up mechanism as resulting actions after a FATF mutual evaluation process.
