Anti-Money Laundering State Mechanisms by Michele Sciurba

Author:Michele Sciurba
Language: deu
Format: epub
Publisher: Edition Faust
Published: 2018-12-15T00:00:00+00:00

VI.

International Institutional Cooperation and Standard Setting in the Fight against Money Laundering and Terrorism Financing

VI.1 The Creation of an International Anti-Money Laundering Network

The FATF was founded at the G7 Summit in Paris in 1989 to establish a network of international cooperation to combat money laundering and to prevent the misuse of the financial systems and financial institutions by organised crime. 228 The G7 heads of state, the President of the European Commission, and eight other FATF states have been jointly given the task of developing recommendations and international AML standards for the financial sector. At the same time, the World Bank (WB) and International Monetary Fund (IMF) launched the Financial Sector Assessment Program (FSAP) to help countries with poorly developed financial regulation to implement the standards and codes of the WB and IMF in conjunction with the FATF Recommendations. 229 In the 1990s, the IMF promoted the creation of an international AML network by establishing international standards on banking, insurance and securities regulation and supervision containing AML measures. 230 At the UN level, these include the UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances established in 1988 and the Palermo Convention against organised crime established in 2000. 231 In addition, the International Convention for the Suppression of the Financing of Terrorism criminalised terrorism financing internationally in 1999. 232

The creation of eight FATF-style Regional Bodies (FSRBs) that represent 180 countries worldwide completed the FATF’s organisational structure. 233 These regional ML working groups have been central to the implementation of AML/CTF standards in individual countries. After 9/11, the FATF intensified its cooperation with the IMF, WB, the UN, and regional multilateral organisations and in 2004 added nine special AML/CTF recommendations to fight terrorism to its existing 40 AML recommendations. The IMF and WB adopted these new recommendations, which were the minimum standard all jurisdictions should implement. 234 In this way, the IMF expanded its AML strategy to include the fight against terrorist financing. 235 The IMF and the WB are observers to the FATF. Employees from both institutions take part in the FATF meetings and the FATF working groups that meet several times a year. The IMF and WB apply the same standards and methods in their country assessments as the FATF and the FSRBs. 236 The cooperation of FATF, IMF and WB on AML and CTF issues is likewise reflected in the IMF’s and Financial Integrity Group’s (FIG) FSAPs and Report on the Observance of Standards and Codes (ROSC) programs including the FATF and FSRBs. 237 Since 2004, the IMF has carried out more than 35 AML/CTF assessments. The FATF and FSRBs frequently incorporate the results of the IMF’s work to further develop their recommendations.

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