Which is true about FATF-Style Regional Bodies (FSRBs)?
Click on the arrows to vote for the correct answer
A. B. C. D.B
FATF-Style Regional Bodies (FSRBs) are intergovernmental organizations that were created to promote the effective implementation of anti-money laundering (AML) and counter-terrorist financing (CTF) measures at the regional level. The FATF itself, which stands for the Financial Action Task Force, is the global standard-setter for AML and CTF measures.
Let's go through each answer choice:
A. Tools used by FSRBs include training measures and mutual evaluations of Its members.
This answer choice is correct. FSRBs do use various tools to help their member countries implement AML and CTF measures effectively. These tools include training measures and mutual evaluations of member countries. Training measures can include workshops, seminars, and other events that help disseminate best practices for AML and CTF. Mutual evaluations are assessments of a country's AML/CTF regime, conducted by other member countries, to help identify areas for improvement.
B. A FATF member country cannot also be a member of an FSRB.
This answer choice is incorrect. FATF member countries can also be members of FSRBs. In fact, many FATF member countries are also members of FSRBs. For example, the United States is a member of both the FATF and the Caribbean Financial Action Task Force (CFATF), an FSRB.
C. FSRBs set standards for their member countries that supplement FATF's standards.
This answer choice is partially correct. FSRBs do not set standards that supplement the FATF's standards. However, FSRBs do help to promote the effective implementation of the FATF's standards at the regional level. This can include developing guidance documents and other resources that help member countries apply the FATF's standards to their specific regional context.
D. To be a member of an FSRB, a country must have enacted AML and Anti-Terrorist Financing laws.
This answer choice is correct. In order to become a member of an FSRB, a country must have enacted AML and CTF laws. This is because FSRBs are focused on promoting the effective implementation of these laws, so it makes sense that member countries must have them in place.