Fatf new assessment methodology pdf

Fatf recommendations 2012, and the methodology for assessing compliance with the fatf recommendations and the effectiveness of amlcft systems 20, as amended from time to time. A regulatory framework that supports the application of rba. Mobile money methodology for assessing money laundering and terrorist financing risk table of contents 0. We look forward to carrying out this revision work in close collaboration with associate members and completing it by early 20.

Methodology for assessing technical compliance with the fatf recommendations and the effectiveness of amlcft systems. How to perform a financial institution risk assessment. For assessing technical compliance with fatf recommendations and effectiveness of aml cft systems. Report on the outcome of the fatf plenary meeting and. Understanding the new payment methods, their risks, and.

This first section is an introduction, giving an overview of the assessment methodology. To reflect new ratings in your aml programs you will need rollforward your program. In the case of financial institutions, such a risk assessment should take place prior to the launch of the new products, business practices or the use of new or developing technologies. The financial action task force fatf is an independent intergovernmental body that develops and promotes. Support for developing or adapting a tailored risk assessment methodology. The financial action task force fatf the financial action task force fatf is an independent intergovernmental body that develops and promotes. Assessments focus on two areas, effectiveness and technical compliance. A national risk assessment is required in order to understand and respond to the amlcft threats and vulnerability. As part of her national mltf risk assessment nra, nigeria assessed the money launderingterrorist financing risk in financial inclusion products in nigeria. A new assessment of the terrorist financing risk, unlike the previous one, was made by using the world bank methodology. Fatfs assessment methodology for both old and new recommendations. Fatf methodology for assessing technical compliance with the fatf recommendations and the. Mutual evaluations financial action task force fatf. In 2007, the financial action task force fatf had introduced a guidance called riskbased approach to combating money laundering and terrorist financing outlining the importance of implementing the riskbased approach as part of the aml program in banking and other industries.

Recently, acams today had the opportunity to interview the team at the core of the acams risk assessment methodology. Country risk methodology and ratings update effective 26. Does the financial action task force fatf help or hinder financial inclusion. Procedures for the fatf fourth round of amlcft mutual. The design of a regulatory framework that supports the application of rba. October 31, 2001, the fatf issued a new set of guidelines and a set of nine. The methodology for assessing compliance with antimoney. This page includes examples of published national risk assessments nras and regional risk. Public disclosure authorized recent fatf action amlcft. Fatf issues new risk assessment guidance, targets ngos. Financial action task force, and fatf style regional bodies fsrbs. In doing so, this paper seeks to answer the following questions.

A financial institution risk assessment is a measure of the potential threats present at, and for, your financial institution. The views expressed in this document are those of the fatf and do not necessarily reflect the views of the government. The fatf has updated its assessment methodology for recommendation 8 and immediate outcome 10 to bring it into line with those revisions. Please set out if, and if so, how, you used the 2007. Mutual evaluations asiapacific group on money laundering. Hong kong therefore recognises the need to conduct the risk assessment in response to these developments. Prepaid cards, epayments, b2b, mobile banking, mobile payment services, virtual currencies. Methodology 20 pdf, 2,650kb procedures for the fatf fourth round of amlcft mutual evaluations pdf, 1,751kb. Fatf methodology for assessing compliance with the fatf. Moneylaundering, and new guidance was issued on prepaid cards, mobile payments and internet based payment services. A mutual evaluation report provides an indepth description and analysis of a countrys system for preventing.

Consolidated table of assessment ratings pdf format. New paragraph and footnote to provide guidance on how to assess requirements relating to virtual. Fatf 202019, methodology for assessing compliance with the fatf. Fatf recommendations 2012, and the methodology for assessing. Future risk assessments may be able to seek new or alternative.

Fatf revised the assessment methodology used to assess a countrys compliance with the fatf recommendations which are vitally important in determining which countries get added to or removed from public lists fatf maintains of noncompliant jurisdictions, incorporating for the first time assessment of the effectiveness of a given countrys. This national risk assessment uses a new model based on int ernational guidance 2, where risk is a function of. Fatf provides five high level principles that need to be in considered. Antimoney laundering and combating the financing of.

Hong kong has made reference to the fatf guidance on national money laundering and terrorist financing risk assessment and adopted the world bank tool in conducting its first territorywide risk assessment. The fatf plenary will adopt the revised text of the recommendations in february 2012, and then begin work on revising the assessment methodology and the mutual evaluation and followup processes. Further to this, when new products and services are added, the risks should be evaluated prior to implementation to ensure. Consolidated table of assessment ratings pdf format pdf. A country must demonstrate that, in the context of the risks it is. This methodology is designed to assist assessors when they are conducting an assessment of a. The emphasis of any assessment is on effectiveness. This document sets out the procedures that are the basis for that fourth round of mutual evaluations.

For assessing technical compliance with fatf recommendations and. Financial action task force on money laundering wikipedia. Pushback on new restrictions not based on risk assessment not targeted not proportionate conduct shadow risk assessment of npo sector using relevant methodology experts needed engage with authorities on upcoming evaluation and follow up engage with fsrb fatf directly on upcoming evaluation and follow up strategy options. Methodology for assessing technical compliance with the fatf. Financial action task force fatf, fatf guidance on counter proliferation financing. Future assessment of members of the fatf and fatf style regional bodes will be conducted on the basis of this revised methodology. Previously created or published programs will not reflect new country risk ratings but will keep the. Country risk assessment methodology the following criteria is used to apply each country with their risk ratings. Paris, 22 february 20 the financial action task forces new methodology for assessing technical compliance with the fatf recommendations and the effectiveness of amlcft systems sets out how the fatf will determine whether a country is sufficiently compliant with the 2012 fatf standards and whether its amlcft system is working effectively. Fatf recommendations 2012, and the methodology for assessing technical compliance with the fatf recommendations and the effectiveness of money laundering counter financing of anti terrorism amlcft systems the 20 assessment methodology, as amended from time to time. This detailed assessment report for panama on the fatf recommendations for antimoney laundering and combating the financing of terrorism was prepared by a team of the international monetary fund using the assessment methodology adopted by the fatf in february 2004 and endorsed by the executive board of the imf in march 2004.

This is in compliance with recommendation 1 of the financial action task force fatf standards. Finally, in response to recent developments that had an impact on fund. The fatf methodology for assessing compliance with the fatf recommendations and the effectiveness of amlcft systems sets out the evaluation process. National money laundering and terrorist financing risk. The financial action task force fatf updated the list of jurisdictions under increased monitoring on 21 feb 2020. Methodology for assessing compliance with the fatf 40. Riskbased approach guidance for the banking sector fatf. Does the financial action task force fatf help or hinder. Antimoney laundering financial secrecy index tax justice. Risk based approach guidance for legal professionals pdf. Fatf recommendations and new guidance, and outlines.

Fatf s new recommendations do hold the potential to bring many more people. Applying a riskbased approach rba relevant persons are required to apply an approach to their antimoney laundering, counterterrorist financing compliance collectively referred to. Examining fatfs recommendation on risk based approach. The fatf recommendations, the international antimoney laundering and combating the financing of terrorism and proliferation amlcft standards, and the fatf methodology to assess the effectiveness of amlcft systems. Financial action task force fatf, the international body dedicated to counter money laundering.

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