Which are primary purposes of Financial Action Task Force (FATF)-Style Regional Bodies? (Choose two.)
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A. B. C. D. E.AD
The Financial Action Task Force (FATF) is an intergovernmental organization that was established in 1989 to combat money laundering and terrorist financing globally. The FATF has developed a set of recommendations, commonly known as the FATF Recommendations, which provide a comprehensive framework of measures that countries should implement to prevent, detect and investigate money laundering and terrorist financing.
To assist in the implementation and promotion of the FATF Recommendations, the FATF has established a network of regional bodies known as the FATF-Style Regional Bodies (FSRBs). The FSRBs are independent organizations that operate under the umbrella of the FATF and work in close cooperation with it to promote the effective implementation of the FATF Recommendations.
The primary purposes of the FSRBs are as follows:
Providing expertise and input in FATF policy-making: The FSRBs play a crucial role in providing regional perspectives and expertise to the FATF in the development and revision of its policies and guidance.
Promoting effective implementation of FATF recommendations: The FSRBs work to promote the effective implementation of the FATF Recommendations in their respective regions by providing technical assistance and training, conducting assessments of member countries' compliance with the Recommendations, and identifying areas where additional support may be required.
Therefore, options B and D are correct as the primary purposes of the FSRBs are to provide expertise and input in FATF policy-making and to promote effective implementation of FATF recommendations.
Option A is incorrect as imposing special measures for non-cooperative jurisdictions is the responsibility of the FATF, not the FSRBs. Option C is incorrect as providing due diligence for foreign correspondent banks is the responsibility of financial institutions, not the FSRBs. Option E is incorrect as acting as a prudential regulatory body for financial institutions is the responsibility of national financial regulators, not the FSRBs.