|
In recent
years, worldwide efforts to combat money laundering and the financing of
terrorism have assumed heightened importance. Money laundering and the
financing of terrorism are global problems that not only threaten
security, but also compromise the stability, transparency, and
efficiency of financial systems, thus undermining economic prosperity.
Strategy
The
global agenda to curb money laundering and the financing of terrorism
calls for a cooperative approach among many different
international bodies. Efforts to establish an international standard
response against money laundering and the financing of
terrorism have been led by the Financial
Action Task Force on Money Laundering (FATF)
and through the development of the FATF
40 Recommendations
which serve as the international framework for AML efforts. In
October, 2001, FATF expanded its mission to include combating the
financing of terrorism, and adopted Eight Special Recommendations on
Terrorist Financing. The Boards of the World Bank and the
International Monetary Fund (IMF) have recognized these
recommendations as the appropriate international standard for
combating money laundering and the financing of terrorism and intensified their work in
this area.
The World Bank and the IMF have also
established a collaborative framework with the FATF for conducting
comprehensive AML/CFT assessments of countries’ compliance with the
FATF 40+8 Recommendations, using a single global methodology. The FATF
adopted its new Forty Recommendations in June 2003, and the
revised assessment methodology covering both the FATF Forty
Recommendations and the eight Special Recommendations was
subsequently adopted by the FATF in February 2004. The FATF
worked in conjunction with the Bank and Fund and FATF-style regional
bodies (FSRBs) on revisions to the standards and the methodology
which now have been endorsed by the Fund and Bank. There is
agreement that the Fund, the Bank and the FATF will all use the common
methodology in their forthcoming AML/CFT assessments and mutual
evaluations. Similarly, the FSRBs are in the process of considering to
agree to use the common methodology in their mutual evaluations.
The Boards of the World Bank and the International Monetary Fund
have agreed to adopt a more comprehensive and integrated approach to
conducting assessments of compliance with international standards for
fighting money laundering and terrorist financing in member countries,
and to step up the delivery of technical assistance to those countries
whose financial systems are most at risk. The assessments are
carried out as part of the Financial
Sector Assessment Program (FSAP) and lead to a Report
on Observance of Standard and Codes (ROSCs).
|
