Mutual Evaluation Reports and International Cooperation in AML/CFT

These flashcards cover key concepts related to mutual evaluation processes, FATF standards, and international cooperation frameworks in the context of anti-money laundering and counter-terrorist financing.

What are the seven stages of the mutual evaluation process?

The stages are: Assessor training, Jurisdiction training, Selection of assessors, Technical review, Scoping note, On-site visit, Draft MER, and FATF plenary adoption.

What does the FATF do to identify high-risk and non-cooperative jurisdictions?

FATF conducts a comprehensive review process, overseen by the International Cooperation Review Group, to assess AML/CFT measures and identify threats, vulnerabilities, and risks.

What is the grey list according to FATF criteria?

The grey list identifies jurisdictions with strategic deficiencies in their AML/CFT systems that are actively working with FATF to address these issues.

What can happen to jurisdictions that perform poorly on FATF evaluations?

They risk placement on FATF’s grey list or black list, which can lead to increased scrutiny from banks and potential economic consequences.

What does Recommendation 1 of FATF standards require from jurisdictions?

It requires jurisdictions to identify, assess, and understand their money laundering and terrorist financing risks and implement effective risk mitigation measures.

What is a key practice suggested by FATF for jurisdictions to conduct risk assessments?

FATF suggests a six-step framework that includes environmental scans, analytical data collection, threat analysis, vulnerability assessments, risk assessments, and horizon scanning.

How did the UAE improve its standing with FATF after being placed on the grey list?

The UAE amended legislation, updated guidelines for financial institutions, and increased the frequency and size of AML/CFT sanctions.

What is the role of the UNODC in the global fight against money laundering?

UNODC assists member states in combating money laundering, terrorist financing, and transnational organized crime by promoting cooperation and providing guidance.

What is the purpose of the OECD's Convention on Combating Bribery?

It requires signatory countries to establish laws criminalizing the bribery of foreign public officials and includes a monitoring mechanism for compliance.

What is the Basel Committee on Banking Supervision primarily concerned with?

It focuses on enhancing the global banking system through improved banking regulation, supervision, and practices.