scholarly journals Features of legal nature Financial Action Task Force on Money Laundering FATF

2020 ◽  
pp. 370-374
Author(s):  
Оlga Pereverzyeva ◽  
Vasif Gadjiev
Keyword(s):  
Money Laundering ◽  
Large Scale ◽  
Task Force ◽  
International Standards ◽  
Intergovernmental Organization ◽  
Successful Work ◽  
Legal Nature ◽  
Organization Analysis ◽  
The Status ◽  
Financing Of Terrorism

The article is devoted to the peculiarities of the legal nature of FATF, the process of its creation, the legal principles of activity,as well as the speciality of its legal entity. Attention is also devoted to the main Conventions, which were signed on the eve of The FirstWorld War and after The Second World War and shows the main preconditions and reasons for the creation of the intergovernmentalorganization FATF.The ongoing growth of the drug business, the expansion of its geographical boundaries, increasingly sophisticated and dangerousforms of this criminal business, the struggle of states on large-scale crime related to the legalization of criminal proceeds led to the creationof FATF and it achieved important results in this area.FATF cannot be considered by an international organization because it has not been established on the basis of an internationaltreaty and does not have an approved statute. However, despite this, FATF has a decision to establish a group – this is the legal basisfor its activities and is an intergovernmental organization. Analysis of FATF’s activities shows that FATF’s initial priority was to combatlaundering of proceeds from drug trafficking. Today FATF’s activities have three main directions: expanding the actions of its adoptedrecommendations to all continents and regions of the globe; checking how member states are executed and how anti-money launderingmeasures are implemented in other states, based on 40 plus 9 FATF recommendations that are guidance to action; tracking worldwidemethods and schemes of laundering criminally used capital and developing countermeasures. To date, a set of 40 FATF recommendationsand 9 Special Recommendations for Countering The Financing of Terrorism is a set of universal standards that lead to a successfulfight against money laundering. The new version of this document was adopted in 1996, 2003 and 2012. One of FATF activities is todefine so-called non-cooperative countries and territories and make their list, which is called the «blacklist». Although the country’sinclusion in the “blacklist” does not lead to the application of sanctions by the world community, it indicates a degree of trust in it onthe part of foreign investors. Lacking the status of an international legal act, FATF’s recommendations in practice received generalrecognition as universal international standards in the field of anti-money laundering. Successful work on counteracting the launderingof dirty funds should be carried out simultaneously at two levels – at international and national levels. FATF functions – to monitor theprocesses of implementation of such measures, to study ways and techniques of money laundering, to develop preventive and preventivemeasures, to promote the global implementation of anti-money laundering standards. FATF’s recommendations in practice receivedgeneral recognition as universal international standards in the field of anti-money laundering. Every year FATF organizes meetings onthe analysis of methods and trends related to combating the laundering of criminal proceeds and financing of terrorism.

scholarly journals Features of legal nature Financial Action Task Force on Money Laundering FATF

2020 ◽  
pp. 370-374
Author(s):  
Оlga Pereverzyeva ◽  
Vasif Gadjiev
Keyword(s):  
Money Laundering ◽  
Large Scale ◽  
Task Force ◽  
International Standards ◽  
Intergovernmental Organization ◽  
Successful Work ◽  
Legal Nature ◽  
Organization Analysis ◽  
The Status ◽  
Financing Of Terrorism

The article is devoted to the peculiarities of the legal nature of FATF, the process of its creation, the legal principles of activity,as well as the speciality of its legal entity. Attention is also devoted to the main Conventions, which were signed on the eve of The FirstWorld War and after The Second World War and shows the main preconditions and reasons for the creation of the intergovernmentalorganization FATF.The ongoing growth of the drug business, the expansion of its geographical boundaries, increasingly sophisticated and dangerousforms of this criminal business, the struggle of states on large-scale crime related to the legalization of criminal proceeds led to the creationof FATF and it achieved important results in this area.FATF cannot be considered by an international organization because it has not been established on the basis of an internationaltreaty and does not have an approved statute. However, despite this, FATF has a decision to establish a group – this is the legal basisfor its activities and is an intergovernmental organization. Analysis of FATF’s activities shows that FATF’s initial priority was to combatlaundering of proceeds from drug trafficking. Today FATF’s activities have three main directions: expanding the actions of its adoptedrecommendations to all continents and regions of the globe; checking how member states are executed and how anti-money launderingmeasures are implemented in other states, based on 40 plus 9 FATF recommendations that are guidance to action; tracking worldwidemethods and schemes of laundering criminally used capital and developing countermeasures. To date, a set of 40 FATF recommendationsand 9 Special Recommendations for Countering The Financing of Terrorism is a set of universal standards that lead to a successfulfight against money laundering. The new version of this document was adopted in 1996, 2003 and 2012. One of FATF activities is todefine so-called non-cooperative countries and territories and make their list, which is called the «blacklist». Although the country’sinclusion in the “blacklist” does not lead to the application of sanctions by the world community, it indicates a degree of trust in it onthe part of foreign investors. Lacking the status of an international legal act, FATF’s recommendations in practice received generalrecognition as universal international standards in the field of anti-money laundering. Successful work on counteracting the launderingof dirty funds should be carried out simultaneously at two levels – at international and national levels. FATF functions – to monitor theprocesses of implementation of such measures, to study ways and techniques of money laundering, to develop preventive and preventivemeasures, to promote the global implementation of anti-money laundering standards. FATF’s recommendations in practice receivedgeneral recognition as universal international standards in the field of anti-money laundering. Every year FATF organizes meetings onthe analysis of methods and trends related to combating the laundering of criminal proceeds and financing of terrorism.

OPICAL ISSUES OF THE FATF’s INTERNATIONAL LEGAL STATUS

2020 ◽  
pp. 144-153
Author(s):  
Denis A. Alexander ◽  
Keyword(s):  
International Law ◽  
Money Laundering ◽  
International Organizations ◽  
Legal Status ◽  
Task Force ◽  
Point Of View ◽  
International Treaties ◽  
Intergovernmental Organization ◽  
The Law ◽  
Financing Of Terrorism

Anti-money laundering and combating the financing of terrorism (AML/CFT) is a complex area in which many state authorities of the countries of the world are involved, as well as numerous international organizations and institutions. One of these international institutions is the Financial Action Task Force on Money Laundering (FATF), the main organization in this area. There are many disputes among the scientific community and practitioners regarding its legal status. It is not an international (intergovernmental) organization under international law. But is it worth it to acquire such a status and what are the consequences of its acceptance / non-acceptance? This article will analyze in detail the legal status of the FATF from the point of view of international law (the law of international organizations, the law of international treaties, the law of international customs), as well as study other issues directly related to it, which may affect the international community's decision to change its status, for example the fact of possible politicization of the FATF due to its informal status.

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.”

scholarly journals The Formal, Financial and Fraught Route to Global Digital Identity Governance

2021 ◽  
Vol 4 ◽  
Author(s):  
Malcolm Campbell-Verduyn ◽  
Moritz Hütten
Keyword(s):  
Media Studies ◽  
Money Laundering ◽  
International Organizations ◽  
Task Force ◽  
Centralized Control ◽  
Digital Identity ◽  
Financial Flows ◽  
Intergovernmental Organization ◽  
Financial Action Task ◽  
Financing Of Terrorism

How can we understand the progressive, piecemeal emergence of global digital identity governance? Examining the activities of the Financial Action Task Force (FATF) - an intergovernmental organization at the center of global anti-money laundering and counter-the-financing of terrorism governance-this paper advances a two-fold argument. First, the FATF shapes how, where and who is involved in developing key standards of acceptability underpinning digital identity governance in blockchain activities. While not itself directly involved in the actual coding of blockchain protocols, the FATF influences the location and type of centralized modes of control over digital identity governance. Drawing on the notion of protocological control from media studies, we illustrate how centralized control emerging in global digital identity governance emanates from the global governance of financial flows long considered by international organizations like the FATF. Second, we suggest that governance by blockchains persistently shapes the ability of the FATF to stem illicit international financial flows. In highlighting both the influence of FATF on blockchain governance and blockchain governance on the FATF, we draw together two strands of literature that have been considered separately in an analysis of the formal, financial and fraught route to global digital identity governance.

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.

Challenges in customer due diligence for banks in the UAE

2020 ◽  
Vol 23 (2) ◽  
pp. 527-539
Author(s):  
Dina ElYacoubi
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Business Environment ◽  
Law Firms ◽  
Due Diligence ◽  
Remedial Action ◽  
Content Type ◽  
Narcotics Control ◽  
Financing Of Terrorism ◽  
Customer Due Diligence

Purpose The purpose of this paper is to unpack the customer due diligence (CDD) vulnerabilities and to examine and analyze the UAE specific dynamics that make the country exposed to these threats. This research also intends to put on the table suitable solutions and remedial action steps that the UAE government, regulators and financial institutions (FIs) can adopt. Design/methodology/approach This study is qualitative in nature. Findings Despite the impressive regulatory framework and the satisfactory practices by FIs, there still remains some UAE specific challenges that make it difficult to undertake CDD for certain customers. The challenges that were identified include difficulties in Arabic names, complications in identifying the beneficial owners, impediments in establishing the source of wealth/funds, concerns with politically exposed persons, the increasing cost of compliance that resulted in a pattern of de-risking within FIs. Research limitations/implications The international bodies whose mandate is to formulate the necessary anti-money laundering and combating the financing of terrorism policies and regulations for global implementation together with Association of Certified Anti-Money Laundering Specialists (ACAMS) have published sufficient studies on CDD-related issues in the UAE. Yet on the other hand, very limited literature was found by independent scholars. This paper will, therefore, largely reference publications by Financial Action Task Force, the International Narcotics Control Strategy Report and ACAMS. It will also include works by respected law firms that have operations in the UAE, local publications, government documents, academic papers by the International Monetary Fund and the World Bank, legal journals and others. Originality/value Illicit actors exploit the UAE’s relatively open business environment, a multitude of global banks and exchange houses and global transportation links to undertake illicit financial activity […] the UAE does not have any major anti-money laundering (AML) deficiencies. However, the monitoring of FIs for AML purposes, particularly in the area of CDD, could be improved. This paper unpacks the CDD vulnerabilities and analyzes the UAE specific dynamics that make the country exposed to these threats. This research also puts on the table suitable remedial action steps that the UAE government, regulators and FIs can adopt.

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.

Legal analysis of Qatar’santi-money laundering and combating terrorist financing legislation and regulation amidst the summer 2017 GCC crisis

2020 ◽  
Vol 23 (4) ◽  
pp. 793-804
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Money Laundering ◽  
International Standards ◽  
Legal Analysis ◽  
Content Type ◽  
Non Profit ◽  
Terrorist Financing ◽  
The Past ◽  
Regulatory Bodies ◽  
The Government ◽  
Financing Of Terrorism

Purpose The recent diplomatic split between members of the Gulf Cooperation Council (GCC) and Qatar with accusations of terrorist financing (TF). This paper aims to study Qatar’s domestic legislations, which specifically targets money laundering and TF activities. The country has stringently worked in compliance with international standards on combating financing of terrorism (CFT) and anti-money laundering (AML) practices by imparting autonomous power to regulatory bodies, such as the Qatar Central Bank and other agencies. Design/methodology/approach This paper studies independent legislations passed under the Emir’s decree over the past decade advancing Qatar’s AML ranking, with significant effort in CFT regulations. The paper also analyses the advancement in AML/CFT regulation and their validity with respect to international standards set by various governmental, intergovernmental and non-profit agencies. Findings The analysis finds Qatar in compliance with strong AML/CFT regulations. Further, it finds the government to have provided transparent oversight to international organizations that attest to the findings of the legislative efforts. This paper disproves claims and accusations that have possibly been presented to the GCC and subsequently led members to abruptly end diplomatic relations with Qatar over allegations of TF activities, amongst others. Originality/value The paper offers insight into Qatar’s legislative and regulatory advancement with respect to the AML/CTF in the past decade. The paper also discusses Qatar’s legislative advancement in relation to the evolutions of the country’s financial system, adopting a more robust mechanism to combat financing of terrorism and ML.

Aspekty prawne przeciwdziałania i zwalczania prania pieniędzy w Polsce. Wyzwanie dla polskich instytucji finansowych

2019 ◽  
Vol 77 ◽  
pp. 7-22
Author(s):  
Małgorzata Brulińska
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Legal System ◽  
Task Force ◽  
Research Problem ◽  
National System ◽  
Legal Challenges ◽  
New Challenges ◽  
Financing Of Terrorism

This publication consists of two parts: The first part concerns new challenges, which financial institutions will have to meet on the basis of the new act on counteracting money laundering and financing of terrorism (Dz.U. 2018, item 723), which came into force on 13 July 2018 and implement the provisions of Directive of the European Parliament and of the Council (EU) 2015/849 of 20 May 2015 to the Polish legal system. and introduces revised Financial Task Force (FATF) recommendations. The changes are aimed to increasing the effectiveness of the national system of counteracting money laundering and financing of terrorism and will have a significant impact on the functioning of the Polish financial institutions. The second part focuses on presenting long-term challenges in the area of AML (Anti-Money Laundering) / FTR (Financial Transaction Report) that will be faced by Polish financial institutions. The research problem is the question, which legal challenges will appear for the Polish institutions at the time of entry into force of the Act of 1 March 2018 on counteracting money laundering and financing of terrorism and what new challenges will face the legislator (and not only legislator) in the further future.

Suspicious transaction reporting: an Indian experience

2015 ◽  
Vol 18 (1) ◽  
pp. 2-16 ◽  
Author(s):  
B. Viritha ◽  
V. Mariappan ◽  
Irfan Ul Haq
Keyword(s):  
Money Laundering ◽  
Reporting System ◽  
Task Force ◽  
Annual Reports ◽  
Content Type ◽  
Suspicious Transaction ◽  
Financing Of Terrorism ◽  
Secondary Information ◽  
Financial Intelligence ◽  
The Impact

Purpose – The purpose of this paper is to assess the effectiveness of anti-money laundering (AML) reporting system in India in terms of Suspicious Transaction Reports (STRs) and its impact on countering money laundering through the conviction and confiscation. The main emphasis of financial action task force (FATF) guidelines on AML and countering of financing of terrorism (CFT) is the obligation of financial institutions and designated non-financial businesses and professions to instantaneously report the suspicious transactions to Financial Intelligence Unit (FIU), an agency with a mandate to deal with AML. Design/methodology/approach – It is a descriptive study to explore the outcome of the AML process. The study has used the secondary information published in the annual reports of FIU-India and FATF. The study period is 2006-2007 to 2011-2012. Findings – Though there is a significant increase in the STRs filed, the impact of AML is not realized in terms of neither AML-related convictions nor confiscations, since the enactment of the Prevention of Money Laundering Act (PMLA). However, the AML/CFT regime in India has just started earnestly, and it still has to go a long way before stabilizing and achieve tangible results. Research limitations/implications – In the Indian context, only few of the effectiveness indicators of the FATF methodology 2013 could be selected due to the limited availability of data, as much of the information maintained by various stakeholders, including reporting entities, FIU-India and other investigative and enforcement agencies, is kept confidential. Thus, it is difficult to establish the effectiveness of enforcement function of AML. Evaluation of effectiveness of AML is judged on the basis of convictions and confiscations. Originality/value – There is a dearth of studies assessing the reporting system under PMLA and thus this paper attempts to throw some insights on the outcome of AML chain, especially the impact of reporting suspicious transactions.

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