Which statements relate to the mandate, roles, and responsibilities of the Financial Action Task Force (FATF) and the FATF-Style Regional Bodies (FSRBs)? (Choose two.)
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A. B. C. D. E.CE
The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 to develop and promote policies to combat money laundering and terrorist financing. The FATF is composed of 39 member countries, and its mandate is to set international standards and promote effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
The FATF-Style Regional Bodies (FSRBs) are regional intergovernmental organizations that have been established to implement and enforce FATF recommendations and standards within their respective regions. There are currently nine FSRBs, each comprising member countries from a particular geographic area. The FSRBs are responsible for ensuring that their member countries implement the FATF's recommendations and standards effectively, and for providing technical assistance and training to their member countries as needed.
With regard to the mandate, roles, and responsibilities of the FATF and FSRBs, the following statements are true:
B. FSRBs have the right to develop standards with which their member countries are bound to comply.
The FSRBs have the authority to develop regional standards that are consistent with the FATF's recommendations and standards. The FSRBs' standards are designed to take into account the specific characteristics and risks of their respective regions, and their member countries are expected to comply with these standards. The FSRBs work closely with the FATF to ensure that their standards are consistent with the FATF's global standards.
C. FSRBs play an essential role in identifying and addressing AML technical assistance needs for their individual member countries.
One of the primary roles of the FSRBs is to provide technical assistance and training to their member countries to help them implement the FATF's recommendations and standards effectively. The FSRBs are responsible for identifying the specific technical assistance needs of their member countries and for developing programs and initiatives to address those needs. The FSRBs work closely with the FATF and other international organizations to ensure that their technical assistance programs are consistent with best practices and global standards.
A, D, and E are incorrect:
A. FATF member countries cannot be members of an FSRB at the same time.
This statement is false. FATF member countries can be members of an FSRB at the same time. In fact, many FATF member countries are also members of one or more FSRBs.
D. In the process of setting standards, FATF will only consider inputs from its member countries as part of the consultation process.
This statement is false. The FATF consults with a wide range of stakeholders, including other international organizations, the private sector, and civil society, as part of its standard-setting process. The FATF also seeks input from non-member countries and jurisdictions that have expressed an interest in the FATF's work.
E. FATF and FSRBs are free-standing organizations that share the common goals of combating money laundering and the financing of terrorism and proliferation.
This statement is partly true but oversimplified. While the FATF and FSRBs share the common goal of combating money laundering and the financing of terrorism and proliferation, they are not completely independent organizations. The FSRBs were established to implement and enforce the FATF's recommendations and standards within their respective regions, and they work closely with the FATF to ensure that their efforts are consistent with global standards.