What do the Financial Action Task Force (FATF) mutual evaluations of each member assess?
Click on the arrows to vote for the correct answer
A. B. C. D.A
https://www.fatf-gafi.org/publications/mutualevaluations/documents/more-about-mutual-evaluations.htmlThe Financial Action Task Force (FATF) is an intergovernmental organization that was created in 1989 to combat money laundering and terrorist financing. The FATF consists of 39 member countries and 2 regional organizations, and its main purpose is to develop and promote policies to combat money laundering and terrorist financing.
One of the main activities of the FATF is to conduct mutual evaluations of each member's implementation of the FATF Recommendations. The mutual evaluations are conducted by peer review teams composed of experts from other member countries, who assess the effectiveness of each member's anti-money laundering and counter-terrorist financing (AML/CFT) regime.
The mutual evaluations assess each member's compliance with the FATF Recommendations in a number of areas, including:
Legal framework: The evaluation examines whether the member country has implemented comprehensive AML/CFT laws and regulations that meet the FATF standards.
Financial system: The evaluation assesses the effectiveness of the member country's financial system in detecting and preventing money laundering and terrorist financing.
Law enforcement and prosecution: The evaluation looks at the member country's capacity to investigate and prosecute money laundering and terrorist financing offenses.
International cooperation: The evaluation examines the member country's cooperation with other countries and international organizations in the fight against money laundering and terrorist financing.
Supervision and regulation: The evaluation assesses the effectiveness of the member country's AML/CFT supervision and regulation of financial institutions and designated non-financial businesses and professions.
The mutual evaluations are conducted in a two-phase process. In the first phase, the peer review team conducts a desk-based review of the member country's AML/CFT regime. In the second phase, the team conducts an on-site visit to the member country to verify the information collected in the first phase and to conduct interviews with relevant stakeholders.
The mutual evaluations are an important tool for the FATF to assess the effectiveness of its Recommendations and to encourage member countries to implement them. The results of the evaluations are published in publicly available reports that identify areas where the member country needs to improve its AML/CFT regime.