Measuring Qatar’s compliance with international standards on money laundering and countering the financing of terrorism

2016 ◽  
Vol 19 (3) ◽  
pp. 264-277 ◽  
Author(s):  
Jon Truby
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Research Field ◽  
International Standards ◽  
International Terrorism ◽  
Regulatory Requirements ◽  
Content Type ◽  
Financial Action Task ◽  
Financing Of Terrorism ◽  
Mutual Evaluation

Purpose Under scrutiny in light of the growing threat of international terrorism, Qatar faces pressure and accusations that it is not doing enough to counter terror financing and clamp down money laundering. The issue is not that Qatar is avoiding positive action, but that by the time measures are implemented, they become outdated because the international community has by then tightened its regulatory requirements. Qatar’s slow pace has led to a case of cat-and-mouse chase with respect to updating its standards, with a revised set of rules being required by the time Qatar implements the last set of international standards. This study aims to draw on lessons from the past to help Qatar avoid findings of it falling below international standards in the upcoming 2017 mutual evaluation. Design/methodology/approach The primary purpose of this article is to catalogue Qatar’s efforts to comply with international anti-money laundering (AML) and anti-terror finance standards. It demonstrates the real legislative progress post-2008 recorded by Qatar to minimize money laundering and terrorist financing. The paper also contests the view that Qatari law is insufficient. Findings The paper explains Qatar’s efforts to comply with the recommendations made by each evaluation by the Financial Action Task Force (FATF). It also highlights the potential for Qatar to be caught out again by the evolution of international expectations in an upcoming review, which, it is understood, is likely to take place in 2017. Originality/value No article exists specifically on this research field. As Qatar prepares for its 2017 FATF evaluation, it should be reminded of the need to comply with all new standards.

Implementation of the concept of “politically exposed persons (PEPs)” in India

2017 ◽  
Vol 20 (1) ◽  
pp. 89-98 ◽  
Author(s):  
Ramandeep Kaur Chhina
Keyword(s):  
Money Laundering ◽  
Regulatory Focus ◽  
Task Force ◽  
International Standards ◽  
Regulatory Requirements ◽  
Content Type ◽  
Reserve Bank ◽  
Financial Action Task ◽  
Definition Of ◽  
Effective Development

Purpose The purpose of this paper is to critically examine the concept of “politically exposed persons (PEPs)” as provided under the Indian anti-money laundering (AML) regime, particularly focussing on the Reserve Bank of India guidelines to its supervised banks on dealing with the potential money laundering risks posed by PEPs. Design/methodology/approach The definition of PEPs as provided by international standard setters and the concept as defined by the Indian AML regime was examined to examine the extend of the compliance of the Indian AML regime with the mandatory requirements of revised 2012 Financial Action Task Force (FATF) recommendations and other international standards. Findings The paper clearly establishes that the current AML regime of India does not fully comply with the mandatory requirements of the revised 2012 FATF recommendations, and the RBI guidelines do not provide any clear indications to its supervised banks on the effective development and implementation of AML PEPs control. The paper argues that it is high time for India to increase its regulatory focus on the issue of PEPs and to expand its definition of PEPs by including both domestic PEPs and “close associates” of PEPs within the definition. Originality/value The paper demonstrates in an exceptional way that despite variations in the scope of the PEPs definition at an international level, all the standard setters have included certain key individuals (both domestic and foreign PEPs and “close associates” of PEPs) within the scope of the definition and how the legal and regulatory requirements in India are falling short of compliance even with these minimum key requirements. By adopting a step-by-step approach in critically examining the current legal and regulatory requirements enforced on banks in India to efficiently deal with the money laundering risks posed by PEPs, the paper makes a valuable contribution in highlighting the steps that might be taken to strengthen PEPs’ AML controls in India.

Anti-money laundering and combating the financing of terrorism compliance

2019 ◽  
Vol 22 (3) ◽  
pp. 451-471 ◽  
Author(s):  
Emmanuel Senanu Mekpor
Keyword(s):  
Money Laundering ◽  
High Frequency ◽  
Task Force ◽  
Developed Countries ◽  
Individual Country ◽  
Content Type ◽  
Financial Action Task ◽  
Financing Of Terrorism ◽  
The Individual ◽  
Mutual Evaluation

Purpose The purpose of this paper is to investigate how well countries comply with global anti-money laundering and counter-financing of terrorism (AML/CFT) regulations. Design/methodology/approach With the help of an AML/CFT compliance index composed by the author, this study is able to numerically quantify countries’ AML/CFT compliance levels. Countries were selected based on their membership with the Financial Action Task Force (FATF), precisely members who have gone through at least one round mutual evaluation and have duly submitted a report to the task force. The AML/CFT index was composed by assigning numeric values to the individual country ratings across all 49 FATF recommendations contained in their mutual evaluation reports (MER). Findings Some notable findings include the yearly global level of AML/CFT compliance between the period 2004 and 2016, as well as compliance levels across continents for the same period. Compliance levels for the seven components of the FATF recommendations were also reported to help assess which set of recommendations countries comply with the most and why they do. It was also found that countries’ lack of compliance was as a result of high cost of compliance with FATF recommendations. Research limitations/implications The main limitation of this study was a lack of high-frequency AML data of countries, especially less-developed countries. Originality/value The uniqueness of this paper lies in the fact that the AML/CFT compliance index constructed and used in the study is the first of its kind.

Updates on Hong Kong’s anti-money laundering laws 2020

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Foster Hong-Cheuk Yim ◽  
Ian Philip Lee
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
High Standard ◽  
Case Law ◽  
Evaluation Report ◽  
Content Type ◽  
Financial Centre ◽  
Salient Points ◽  
Financing Of Terrorism ◽  
Mutual Evaluation

Purpose The purpose of this paper is to discuss the latest developments of anti-money laundering (AML) laws in terms of case law and to give meaningful response in relation to certain key findings (KFs) and recommendations by the financial action task force contained in its mutual evaluation report dated September 2019. Design/methodology/approach In terms of AML case law, the authors analyse the latest judgment from the Hong Kong (HK) court of final appeal. In terms of the evaluation report, the authors outline salient points from the KFs and recommendation, commenting on their likelihood of success. Findings With the developments in AML case law and the KFs identified, HK is expected to maintain its high standard in AML/counter financing of terrorism (CFT) compliance. Originality/value A robust AML/CFT regime is the bedrock of HK’s reputable status as an international financial centre. This study seeks to illicit meaningful interactions amongst all stakeholders.

scholarly journals Criminalisation of terrorism financing in Iranian law

2020 ◽  
Vol 27 (1) ◽  
pp. 231-244 ◽  
Author(s):  
Zeynab Malakoutikhah
Keyword(s):  
Task Force ◽  
Research Field ◽  
International Standards ◽  
National Liberation ◽  
Content Type ◽  
Counter Terrorism ◽  
Iranian Law ◽  
Terrorism Financing ◽  
Liberation Movements ◽  
Financing Of Terrorism

Purpose The purpose of this study is to demonstrate that to what extent the Iranian criminalisation of terrorism financing meets the international standards of counter-terrorism financing regime, particularly the Financing Convention and the Financial Action Task Force (FATF) Recommendations, and what is the main impediment for Iran to integrate at the international level to combat terrorism financing. Also, it tries to rate the Iranian criminalisation of terrorism financing in accordance with the FATF technical compliance rating. Design/methodology/approach This subject is analysed from an Iranian perspective by undertaking fieldwork through collecting documents in Iran and using the official documents, statements and laws, particularly the Iranian Law of Combating Financing of Terrorism (2018) from both Persian and English sources. Findings Iran’s terrorism financing offence is not completely in line with international counter-terrorism financing regime because of an exemption for the struggle of individuals, nations and national liberation movements with the aim of countering domination, foreign occupation, colonisation and racism. The Iranian support for national liberation movements is derived from the Constitutional Law that requires Iran supports the struggles of the oppressed for their rights against the oppressors anywhere in the world. As a result, the FATF Recommendation 5 (criminalisation of terrorism financing) would be rated partially compliant. Originality/value No article exists specifically on this research field. To the author’s knowledge, this paper, for the first time, examines the Iranian criminalisation of terrorism financing. It rates the criminalisation (Recommendation 5) based on the FATF technical compliance rating because no mutual evaluation has been conducted to date. The paper is useful for academicians, law enforcement, policymakers, legislators and researchers.

Updates on Hong Kong’s anti-money laundering laws

2018 ◽  
Vol 21 (3) ◽  
pp. 290-296 ◽  
Author(s):  
Foster Hong-Cheuk Yim ◽  
Ian Philip Lee
Keyword(s):  
Hong Kong ◽  
Money Laundering ◽  
Task Force ◽  
Case Law ◽  
Content Type ◽  
Legislative Council ◽  
Salient Points ◽  
Financial Action Task ◽  
Mutual Evaluation ◽  
International Financial Center

Purpose The purpose of this study is to discuss the latest developments of anti-money laundering (AML) laws in terms of case law and intended legislation amendments. Design/methodology/approach In terms of AML case law, the authors analyze three judgments from the Hong Kong Court of Final Appeal. In terms of the intended legislation amendments, the authors outline salient points from the two amendment bills submitted to the Legislative Council of Hong Kong. Findings With the developments in AML case law and the intended legislation amendments, Hong Kong is expected to have a positive result in the Financial Action Task Force Mutual Evaluation in October/November 2018. Originality/value A robust AML/counter-terrorist financing regime is the bedrock of Hong Kong’s reputable status as an international financial center. This paper seeks to illicit meaningful interactions amongst all stakeholders.

Revisions to the Financial Action Task Force (FATF) Standard - Information Note to the Executive Board

Policy Papers ◽  
2012 ◽  
Vol 2012 (57) ◽  
pp. 1
Author(s):  
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
International Standards ◽  
Executive Board ◽  
Financial Action Task Force ◽  
Standard Information ◽  
Financial Action Task ◽  
Financing Of Terrorism

The purpose of this note is to inform the Executive Board of the amendments made to the standard on anti-money laundering and combating the financing of terrorism (AML/CFT). The Financial Action Task Force (FATF)—the standard setter for AML/CFT—adopted on February 16, 2012 a revised standard, now entitled the “International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation: the FATF Recommendations.”

The EU will struggle to crackdown on money laundering

2019 ◽  
Keyword(s):  
Money Laundering ◽  
Direct Investment ◽  
Banking Sector ◽  
Screening Programme ◽  
Task Force ◽  
International Standards ◽  
Content Type ◽  
Financial Action Task ◽  
National Governments ◽  
The Eu

Subject EU money-laundering concerns. Significance On 5 April, Swedbank Chairman Lars Idermark resigned, following criticism of how the bank has handled allegations of money laundering. The allegations follow similar revelations relating to Danske Bank last year. In addition to raising further questions about the integrity of the Nordic banking sector, it also highlights the EU’s continued exposure to money laundering. Impacts Money-laundering scandals suggest that the international standards set by the Financial Action Task Force are inadequately upheld. Such scandals could increase suspicion among voters that national governments and the EU serve the interests of the elite. Further cases of money laundering could undermine the EU’s new foreign direct investment screening programme. Addressing the proportional divergence in the transparency and rules of national regulatory regimes is high on the EU’s agenda.

Deficient regimes of anti-money laundering and countering the financing of terrorism

2020 ◽  
Vol 23 (3) ◽  
pp. 663-675
Author(s):  
Sisira Dharmasri Jayasekara
Keyword(s):  
Economic Impact ◽  
Money Laundering ◽  
Risk Premium ◽  
Task Force ◽  
Short Term ◽  
Economic Implications ◽  
Content Type ◽  
Financing Of Terrorism ◽  
Mutual Evaluation

Purpose The purposes of this paper are to discuss the short-term economic impact of the jurisdictions that have been identified as deficient countries in terms of the regime of anti-money laundering and countering the financing of terrorism and to identify the probable reasons for the poor results of mutual evaluation reports of the deficient countries. Design/methodology/approach This study uses a case study approach to discuss the short-term economic impact of the countries that are under the International Co-operation Review Group (ICRG) process due to poor results of mutual evaluation reports. The sample of countries for the study was selected based on the Financial Action Task Force (FATF) listing as of November 30, 2019. The objectives of the study are expected to be achieved by discussing the issues of these jurisdictions based on publicly available information. However, this study will not consider the long-term economic impact on the countries due to the observed short-term nature of the ICRG process. Findings This analysis reveals that the ICRG process affects countries in two different perspectives. First, there are implications on the financial system of a deficient country as a result of identifying it as a high-risk country. Second, there are some other forms of economic implications due to the rigorous ICRG process. The downgrading of the sovereign rating by international and credit rating agencies is one of such implications that result in adding a risk premium to the country. This results in increased transaction costs and borrowing costs of deficient countries. Besides, it appears that the ICRG process impacts the capital and currency markets of deficient countries as a result of enhanced due diligence process on fund transfers and limitations in corresponding banking relationships. However, despite these difficulties, some countries have been identified more than once for the ICRG process. Therefore, such countries have to take measures to strengthen the anti-money laundering and countering the financing of terrorism (AML/CFT) regime to avoid future listing. However, long-term sustainability of the countries that were removed from the FATF grey-listing is also questionable under the current FATF methodology of evaluating countries because of the level of effectiveness depends on the judgment of assessors on the risk and context of countries rather the technical compliance. Research limitations/implications This study was limited to the countries that were in the grey list as of November 30, 2019. The countries exited from the list have not been considered for the study. Originality/value This paper is an original work done by the author by discussing the issues of the ICRG process in respect of deficient countries in view of strengthening the AML/CFT regimes of such countries.

Using anti-money laundering measures to curb pension fraud in Nigeria

2020 ◽  
Vol 27 (4) ◽  
pp. 1341-1348
Author(s):  
Ehi Eric Esoimeme
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
International Standards ◽  
Next Of Kin ◽  
Financial Action Task Force ◽  
Content Type ◽  
Record Keeping ◽  
Compliance Officers ◽  
Financial Action Task ◽  
High Level

Purpose The purpose of this paper is to propose a new approach to curbing pension fraud in Nigeria. The approach involves the use of anti-money laundering tools, procedures and expertise to advance the fight against pension fraud in Nigeria. The guidance is non-binding and does not override the purview of the National Pension Commission. The intention is to build on the revised procedures on the processing of death benefits and to complement existing circulars and guidelines issued by the National Pension Commission, including in particular the guidelines for compliance officers. Design/methodology/approach The analysis took the form of a desk study, which analyzed various documents and reports, such as the Financial Action Task Force (2012-2018), International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation (the FATF Recommendations); the Financial Action Task Force Guidance on the Risk-Based Approach to Combating Money Laundering and Terrorist Financing: High Level Principles and Procedures; National Pension Commission Regulations for Compliance Officers; the Joint Money Laundering Steering Group Guidance for the United Kingdom Financial Sector Part I, June 2017 [Amended December 2017] and the Federal Financial Institutions Examination Council (FFIEC) Bank Secrecy Act/Anti-Money Laundering Examination Manual 2014. Findings This paper determined that a strong due diligence process where the owner of the pension account and the next-of-kin/legal beneficiary are duly identified before the establishment of a business relationship is capable of reducing the risks associated with pension fraud to the barest minimum. This paper also determined that anti-money laundering measures, such as record keeping, suspicious transactions reporting, training for anti-fraud/money laundering compliance and an independent audit of systems and controls can help curb pension fraud. Research limitations/implications Pension fraud involves the use of deceit or misrepresentation in connection with a pension claim. There are many different kinds of pension fraud, but the type where the fraud is aimed at stealing a person’s pension funds is what this paper is concerned with. Originality/value Although most publications on pension fraud are focused on anti-fraud measures, this paper focuses on the anti-money laundering measures which can be used by Pension Fund Administrators to curb pension fraud.

Legitimacy of the Summer 2017 GCC crisis and Qatar’s AML framework

2017 ◽  
Vol 20 (4) ◽  
pp. 405-416 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
United Nations ◽  
Money Laundering ◽  
Task Force ◽  
Financial Sector ◽  
Content Type ◽  
Terrorist Financing ◽  
The World ◽  
Regulatory Bodies ◽  
Financial Action Task ◽  
Mutual Evaluation

Purpose In June 2017, members of the Gulf Cooperation Council (GCC) ended diplomatic ties with Qatar. There is a legitimate concern about the accusation levied on Qatar. This paper aims to analyse the progress Qatar’s financial system has made with respect to its anti-money laundering (AML) and counter-terrorist financing (CFT) regulations, which further serves as the country’s effort to combating the financing of terrorism (CTF). The paper further wishes to advance the discussion by considering the legitimate goals of the aforementioned bodies and their discourse on creating national and international obligations towards reducing terrorist financing through robust AML frameworks. Design/methodology/approach The paper analyses Qatar’s legislative and regulatory overhaul following the Financial Action Task Force’s Mutual Evaluation Report. Qatar had distinctively strengthened its approach against Money Laundering and Terrorist Financing. The paper takes an ex ante approach by understanding Qatar’s “strategic deficiencies” before the FATF’s mutual evaluation. Subsequently, the paper studies independent international evaluations of Qatar’s AML/CTF legislation and regulation. Findings The paper finds Qatar in significant compliance to the recommendations of the various international bodies, including the Financial Action Task Force (FATF), Basel AML Index, IMF’s financial sector reviews, United Nations and independent reports on AML progress from regulatory bodies around the world. None of these organizations present obligatory rules but have set and determined and international standard for AML/CTF laws. Originality/value The primary aim is to draw parallels between Qatar’s regulatory AML and CTF efforts through the country’s compliance with international initiatives, such as the FATF guidelines, Basel AML Index, IMF’s financial sector reviews, United Nations and independent reports on AML progress from regulatory bodies around the world.

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