MONEY LAUNDERING FINANCIAL ACTION TASK FORCE - The Financial Action Task Force on Money Laundering also known by its French name, Group daction finance G.A.F.I is an intergovernmental organization founded in 1989 on the initiative of the G-7.! The purpose of the F.A.T.F is to develop policies to combat money laundering and terrorism financing. The F.A.T.F Secretariat is housed at the headquarters of the O.E.C.D in Paris.! HISTORY - In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering F.A.T.F was established by the G-8 Summit that was held in Paris in 1989. Recognising the threat posed to the banking system and to financial institutions, the G-8 Heads of State or Government and President of the European Commission convened the Task Force from the G-8 member States, the European Commission and eight other countries.! The Task Force was given the responsibility of examining money laundering techniques and trends, reviewing the action which had already been taken at a national or international level, and setting out the measures that still needed to be taken to combat money laundering. In April 1990, less than one year after its creation, the F.A.T.F issued a report containing a set of Forty Recommendations, which provide a comprehensive plan of action needed to fight against money laundering.! THE F.A.T.F FORTY Recommendations & SPECIAL Recommendations on TERRORISM FINANCING - THE primary policies issued by the F.A.T.F are the Forty Recommendations on money laundering and the 9 Special Recommendations on Terrorism Financing ,! Together, the Forty Recommendation and Special Recommendations on Terrorism Financing set the international standard for anti-money laundering measures and combating the financing of terrorism and terrorist acts. They set out the principles for action and allow countries a measure of flexibility in implementing these principles according to their particular circumstances and constitutional frameworks. Both sets of F.A.T.F Recommendations are intended to be implemented at the national level through legislation and other legally binding measures.! Implement relevant international conventions ! Criminalise money laundering and enable authorities to confiscate the proceeds of money laundering ! Implement customer due diligence identity verification record keeping and suspicious transaction reporting requirements for financial institutions and designated non-financial businesses and professions, ! Establish a financial intelligence unit to receive and disseminate suspicious transaction reports, and ! Cooperate internationally in investigating and prosecuting money laundering ! NON-COOPERATIVE COUNTRIES OR TERRITORIES - F.A.T.F BLACKLIST - In addition to F.A.T.Fs Forty plus Nine Recommendations, in 2000 F.AT.F issued a list of Non-Cooperative Countries or Territories , commonly called the F.AT.F Blacklist. This was a list of 15 jurisdictions that, for one reason or another, F.A.T.F members believed were uncooperative with other jurisdictions in international efforts against money laundering and, later, terrorism financing Typically, this lack of cooperation manifested itself as an unwillingness or inability frequently, a legal inability to provide foreign law enforcement officials with information relating to bank account and brokerage records, and customer identification and beneficial owner information relating to such bank and brokerage accounts, shell company, and other financial vehicles commonly used in money laundering. The F.AT.F N.C.C.T list is now defunct as the countries on it have made significant improvements in standards and cooperation.! The effect of the F.A.T.F Blacklist has been significant, and arguably has proven more important in international efforts against money laundering than has the F.A.T.F Recommendations. While, under international law, the F.AT.F Blacklist carried with it no formal sanction, in reality, a jurisdiction placed on the F.AT.F Blacklist often found itself under intense financial pressure.! HAVE A NICE DAY ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, FRIENDS !
Posted on: Fri, 17 Oct 2014 08:48:06 +0000
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