| FSAP
In
accordance with the World Bank and International
Monetary Fund (IMF) Boards’ decision first in April
and later in November 2001 to help member countries
strengthen defenses against the destructive activities
consequences of money laundering and the
financing of terrorism, the assessment of measures for
AML/CFT was added to the joint World Bank/IMF Financial
Sector Assessment Program (FSAP) initiative using the
newly adopted comprehensive methodology.
The AML/CFT assessment as part of the FSAP is divided into three
parts, with each bearing a different level of
assessment scrutiny. The level of assessment scrutiny
reflects the relevance of the individual AML/CFT areas.
As experience accumulates, scrutiny of individual areas
could be increased or decreased. On a country-specific
basis additional scrutiny would be applied to individual
areas if staff have reason to believe that significant
deficiencies exist.
A flexible approach to scrutiny is incorporated into
the AML/CFT assessment methodology through a three-part
assessment:
Part 1—legal and institutional framework.
Part 2—supervisory and regulatory framework for
prudentially-regulated financial sectors
Part 3—regulatory framework for other providers of
financial services.
For
more information about the revised AML/CFT Methodology please refer to
the document below. The new methodology will
become effective from September 2004.
For general information about the FSAP, please visit Financial
Sector Website.
ROSC
In
September 2002, the Boards of the Bank and the Fund
endorsed the adoption of a 12 -month pilot program
of AML/CFT assessments and accompanying ROSCs that would
involve participation of the Bank and the Fund, the FATF, and FATF-Style Regional
Bodies (FSRBs).
An effective AML/CFT system requires an adequate
legal and institutional framework, which should include:
(i) laws that create AML/CFT offences and other penal
measures, and that impose the required obligations on
financial institutions (ii) an appropriate institutional
or administrative framework, and (iii) laws that provide
competent authorities with the necessary duties, powers
and sanctions, including the ability to co-operate
internationally. It is also essential that the
competent authorities ensure that the whole system is
effectively implemented.
For more
information about the ROSC, please visit the ROSC
Website.
AML/CFT
- Procedures Guide for Incorporating AML/CFT
Assessments into FSAP and OFC Programs
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