What should be proven about the effectiveness of FATF 40 recommendations during a FATF mutual evaluation of a country?
Click on the arrows to vote for the correct answer
A. B. C. D.A
During a FATF mutual evaluation of a country, the effectiveness of the country's implementation of the FATF 40 recommendations on anti-money laundering (AML) and combating the financing of terrorism (CFT) should be proven. The FATF (Financial Action Task Force) is an intergovernmental organization that sets standards and promotes effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The answer that best describes what should be proven about the effectiveness of FATF 40 recommendations during a FATF mutual evaluation of a country is option C: "There is evidence that the defined outcomes of the evaluated country's AML/CFT system are achieved."
Explanation of options:
A. Money laundering and terrorist financial risks are understood by the FIs in the evaluated country - While this is an important component of an effective AML/CFT system, it does not fully capture the effectiveness of the implementation of the FATF 40 recommendations.
B. The evaluated country has implemented compliant AML/CFT laws and regulations - This is also an important component of an effective AML/CFT system, but it does not fully capture the effectiveness of the implementation of the FATF 40 recommendations.
C. There is evidence that the defined outcomes of the evaluated country's AML/CFT system are achieved - This option is the best answer because it refers to the actual results of the