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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 activitiesconsequences 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 in Financial Sector Assessment Program (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 AML/CFT in the the FSAP, please contact Alain Damais (adamais@worldbank.org).
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 assesments and accompanying ROSCs that would involve participation of the World Bank and the IMF, the Financial Action Task Force, 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 methodology please refer to the document below.
Fund and Bank Methodology for Assessing Anti-Money Laundering and Combating the Financing of Terrorism
For more information about the ROSC, please visit the ROSC Website. |
