The Financial Action Task Force (FATF) and FATF-Style Regional Bodies (FSRBs)
The Financial Action Task Force (FATF)
The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. The FATF was created in 1989 and works to generate legislative and regulatory reforms in these areas. The FATF currently has 36 members, comprising 34 member countries and territories and two regional organizations, as follows: Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, India, Ireland, Italy, Japan, Luxembourg, Mexico, The Netherlands, New Zealand, Norway, Peoples Republic of China, Portugal, Republic of Korea, Russian Federation, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom, the United States, the European Commission and the Gulf Cooperation Council. FATF admitted India in June 2010.
There are also a number of FATF-style regional bodies that, in conjunction with the FATF, constitute an affiliated global network to combat money laundering and the financing of terrorism.
The Asia/Pacific Group on Money Laundering (APG)
The Asia/Pacific Group on Money Laundering (APG) was officially established in February 1997 at the Fourth (and last) Asia/Pacific Money Laundering Symposium in Bangkok as an autonomous regional anti-money laundering body. The 40 APG members are as follows: Afghanistan, Australia, Bangladesh, Brunei Darussalam, Burma, Cambodia, Canada, Chinese Taipei, Cook Islands, Fiji, Hong Kong, India, Indonesia, Japan, Laos, Macau, Malaysia, Maldives, Marshall Islands, Mongolia, Nauru, Nepal, New Zealand, Niue, Pakistan, Palau, Papua New Guinea, Philippines, People’s Republic of China, Samoa, Singapore, Solomon Islands, South Korea, Sri Lanka, Thailand, Timor Leste, Tonga, United States, Vanuatu, and Vietnam.
The Caribbean Financial Action Task Force (CFATF)
The Caribbean Financial Action Task Force (CFATF) was established in 1992. CFATF has 29 members: Anguilla, Antigua & Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Curacao, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Montserrat, Nicaragua, St. Kitts & Nevis, St. Lucia, St. Maarten, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago, Turks & Caicos Islands, and Venezuela. In 2010, Costa Rica and Panama left the group, and, in November 2010, Curacao and St. Maarten become individual members after the dissolution of the Netherlands Antilles.
The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)
The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) was established in 1997 under the acronym PC-R-EV. MONEYVAL is comprised of 28 permanent members; two temporary, rotating members; and one active observer. The permanent members are Albania, Andorra, Armenia, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Liechtenstein, Lithuania, Malta, Moldova, Monaco, Montenegro, Poland, Romania, Russian Federation, San Marino, Serbia, Slovakia, Slovenia, the Former Yugoslav Republic of Macedonia, and Ukraine. The active observer is Israel. Temporary members, designated by the FATF for a two-year membership, are currently Austria and the United Kingdom.
The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)
The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) was established in 1999. Fourteen countries comprise its membership: Botswana, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe.
The Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG)
The Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) was established in 2004, and has nine members: Belarus, India, Kazakhstan, Kyrgyzstan, People’s Republic of China, Russian Federation, Tajikistan, Turkmenistan and Uzbekistan. India and Turkmenistan became the newest members of the group in 2010.
The Financial Action Task Force on Money Laundering in South America (GAFISUD)
The Financial Action Task Force on Money Laundering in South America (GAFISUD) was formally established in 2000 by the ten original member states of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru and Uruguay. Costa Rica and Panama joined the group in 2010, bringing total membership to 12.
Inter-Governmental Action Group against Money Laundering in West Africa (GIABA)
The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) was formally established in 1999. GIABA consists of 15 countries: Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.
The Middle East and North Africa Financial Action Task Force (MENAFATF)
The Middle East and North Africa Financial Action Task Force (MENAFATF) was formally established in 2004. MENAFATF has 18 members: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates, and Yemen.
The Organization of American States Inter-American Drug Abuse Control Commission (OAS/CICAD) Group of Experts to Control Money Laundering
The Organization of American States, through its Inter-American Drug Abuse Control Commission (OAS/CICAD), is responsible for combating illicit drugs and related crimes, including money laundering. In 2010, CICAD continued to carry out its activities in anti-money laundering and combating the financing of terrorism (AML/CFT) throughout Latin America and the Caribbean. CICAD’s AML/CFT training programs seek to improve and enhance the knowledge and capabilities of judges, prosecutors, public defenders, law enforcement agents, and financial intelligence unit (FIU) analysts. The U.S. Department of State Bureau of International Narcotics and Law Enforcement Affairs (INL) provided full or partial funding for many of the CICAD training programs in 2010.
The expert group, which met twice in 2010, has two working groups: one dealing with seizure and forfeiture of assets and their management, coordinated by Costa Rica, and another that deals with coordination and integration of law enforcement agencies and financial intelligence units (FIUs), coordinated by Chile. The two groups deliberated and met in plenary to deal with building consensus on proposals to put before the full CICAD Commission. Discussion also focused on streamlining working group methodology and strategic planning. The expert group designated Uruguay as its representative in a regional initiative to draft model legislation on seized and forfeited assets for the region, sponsored by the United Nations Office on Drugs and Crime (UNODC)-Colombia.
Seized and Forfeited Assets
After completing the project’s two-year pilot phase in Argentina, Chile and Uruguay in December 2009, the Seized and Forfeited Assets Management Program of Latin America (BIDAL, from the Spanish acronym) project shifted to a different regional focus, working with the governments of the Dominican Republic, El Salvador, Guatemala, and Panama to implement asset recovery management programs. As an initial step for each of these four countries, the project carried out an assessment of existing legislation on asset investigation and seized and forfeited asset administration systems before determining the work plan for each country. The CICAD Executive Secretariat worked to help member states implement the guidelines and recommendations that have emerged from the BIDAL project and the Expert Group, on topics such as the recovery of stolen assets, asset tracing, capital asset investigations, mutual legal assistance (MLA), and asset management. The CICAD Executive Secretariat has also drawn on the asset management expertise of the US Marshalls, the National Narcotics Directorate of Colombian and the Costa Rican Institute on Drugs.
The Anti-Money Laundering Section organized a total of 17 seminars and workshops in 14 countries in 2010, training nearly 700 judges, prosecutors, law enforcement officers, financial intelligent unit analysts and forfeited assets administration officers, among other participants. It partnered with the UNODC, the Stolen Assets Recovery (StAR) Initiative of the World Bank, the World Bank Institute, the Ministry of Interior of the Government of Spain and INL of the Department of State, as well as the OAS’s Inter-American Committee Against Terrorism (CICTE) and the governments of CICAD member states.
CICAD also coordinated with the UNODC Legal Assistance Program for Latin America and the Caribbean (LAPLAC/UNODC), INTERPOL, and the South American Financial Action Task Force (GAFISUD) in setting up the Asset Recovery Network of GAFISUD (RRAG per its Spanish abbreviation) as a vehicle for exchanging information about the identification and recovery of assets, products or instruments of transnational illicit activities. This initiative is based on the guidelines of the CARIN Network (CAMDEN Assets Recovery Inter-Agency Network in Europe).
The Anti-Money Laundering section continued with its project backed by LAPLAC/UNODC, the Government of Spain and INL to train judges, prosecutors, police investigators, and financial analysts through mock trials and investigations of money laundering cases. Costa Rica, Dominican Republic, El Salvador, Guatemala, Nicaragua and Panama benefited from the program in 2010.
Joint efforts with the OAS CICTE and UNODC (Vienna), funded by INL, among others, led to two regional workshops in 2010 on the financing of terrorism for legislators, prosecutors, police and financial analysts in Costa Rica (six countries) and The Bahamas (13 countries). CICAD joined follow-up missions with CICTE and UNODC to Bolivia, Costa Rica, Ecuador and Paraguay to discuss implementation of legislation and adjustments in law enforcement.
The Narcotics Affairs Section of the U.S. Embassy in Lima underwrote a comprehensive program to train Peruvian judges, prosecutors, public defenders, law enforcement officers and financial analysts in the techniques and tools for dealing with money laundering and the financing of terrorism. Workshops were held on special investigation techniques, incriminating evidence, and the analysis of financial links and relationships. The Section is also working to develop a methodological plan of investigation for prosecutors and investigators, as well as holding mock investigations and mock trials to give participants hands-on experience. In December, the Superintendence of Banks and Insurance of Peru signed an agreement with the CICAD Executive Secretariat to establish a training center specialized in the control of money laundering and the financing of terrorism.
Pacific Anti-Money Laundering Program (PALP)
The Pacific Anti-Money Laundering Program (PALP), which commenced in September 2006, is a joint initiative between the UN Office on Drugs and Crime (UNODC) and the U.S. Department of State. The PALP was conceived by and is funded by the U.S. Department of State’s Bureau for International Narcotics and Law Enforcement Affairs. The PALP is a regional technical assistance and training program designed to assist the 14 members of the Pacific Islands Forum that are not also members of the Financial Action Task Force (FATF) in establishing, implementing and strengthening their anti-money laundering and combating the financing of terrorism (AML/CFT) regimes. The 14 members of the Pacific Islands Forum that receive PALP assistance are the Cook Islands, the Federated States of Micronesia, Fiji, Kiribati, the Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu. The PALP is coordinated and managed by the United Nations Office on Drugs and Crime, Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML).
The PALP uses resident in-country mentors and intermittent mentors who visit participating jurisdictions to provide tailor-made advice and assistance on establishing viable AML/CFT regimes, including assistance with legal, law enforcement, regulatory, and financial intelligence unit (FIU) development. PALP’s strength lies in the extensive knowledge and years of operational experience of each of the mentors. This wealth of experience means that the PALP mentors are ideally positioned to give participating countries sound advice based upon expert knowledge and practical know-how.
In 2010, the PALP continued to provide assistance on a wide range of AML/CFT issues, including legislative drafting, capacity building, and very importantly, case support. During 2010 a number of jurisdictions passed or amended their AML/CFT legislations and/or regulations. National trainings were also conducted for FIU staff, prosecutors, customs officers and law enforcement officials.
The PALP works in close cooperation with the Asia/Pacific Group against Money Laundering (APG) in order to coordinate delivery of technical assistance and training to jurisdictions that are both APG members and PALP participants. The PALP law enforcement mentor made presentations during the regional training in Kuala Lumpur on Strategic Implementation Planning. This training was supported by APG, Malaysia and Canada, and was provided to 25 FIU personnel, prosecutors, and investigators.
Strong case support was provided in Palau. Assistance was provided by three GPML mentors to the Assistant Attorney General, the Attorney General and the Independent Counsel in relation to and at different stages of ongoing investigations surrounding the collapse of a major bank in Palau. Case support also took place in other jurisdictions. Mentoring investigators and prosecutors is an effective way to ensure that the new knowledge and skills gained through attendance at formal training events is put into operation. Coaching by the PALP mentors builds confidence within officials who are charged with undertaking money laundering investigations and prosecutions.
PALP will continue to provide an on-site and intermittent support to a number of Pacific countries with a focus on Cook Islands; the Republic of Marshal Islands; Samoa; the Kingdom of Tonga; and Vanuatu. The Program will continue to deliver its technical assistance and training efforts on AML/CFT through the work of its FIU mentor, regulatory mentor and legal mentor. Many countries now have legislation in place and have officers trained in basic identification and investigation of AML/CFT related crimes. PALP will focus its work on assisting responsible agencies to undertake successful investigations and prosecutions and to confiscate criminal assets as well as development of AML/CFT supervision programs. The Program is expected to conclude in the third quarter of 2011.
United Nations Global Programme against Money Laundering, Proceeds of Crime, and the Financing of Terrorism (GPML)
The United Nations is one of the most experienced global providers of anti-money laundering (AML) training and technical assistance and, since 9-11, countering financing of terrorism (CFT) training and technical assistance. The United Nations Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML), part of the United Nations Office on Drugs and Crime (UNODC), was established to assist member states to comply with the UN Conventions and other instruments that deal with money-laundering and terrorist financing. These now include the United Nations Convention against Traffic in Narcotic Drugs and Psychotropic Substances (the 1988 Vienna Convention), the United Nations International Convention for the Suppression of the Financing of Terrorism (the 1999 Convention), the United Nations Convention against Transnational Organized Crime (the 2000 Palermo Convention), and the United Nations Convention against Corruption (the 2003 Merida Convention).
In March 2008, GPML’s scope and objectives were widened to meet the growing needs and demands of the international community for tailor-made assistance in the effective implementation of these UN instruments and other international anti-money laundering/countering the financing of terrorism (AML/CFT) standards, and to use AML/CFT systems as effective tools to achieve better financial transparency, integrity and good governance, thereby increasing investment prospects. GPML elaborated an ambitious program to make international action against the proceeds of crime and illegal financial flows more effective. This is done through a wide range of technical assistance measures and in close partnership with regional or multilateral organizations.
GPML is the focal point for AML policy and activities within the UN system and a key player in strengthening efforts to counter terrorist financing. GPML provides technical assistance and training in the development of related legislation, infrastructure and skills, directly assisting member states in the detection, seizure, and confiscation of illicit proceeds. Since 2001, GPML’s technical assistance work on CFT has also received priority. GPML now incorporates a focus on CFT in all its technical assistance work, in particular its financial investigations and financial analysis training tools.
In 2010, GPML provided long-term assistance in the development of viable AML/CFT regimes in six regions, to 44 countries. GPML also delivered 26 training events worldwide, in partnership with other agencies and organizations where possible; and trained 1,250 representatives of law enforcement agencies, financial intelligence units (FIUs), judicial authorities and reporting entities.
An independent evaluation of GPML was conducted throughout the second half of 2010. The evaluators concluded that GPML “has been successful in influencing the adoption of national legislation and the establishment of law enforcement institutions and procedures through its mentoring, training and information support systems.”
The Mentoring Program
GPML’s mentoring program is one of the most successful and well-known activities of international AML/CFT technical assistance and training, and is increasingly serving as a model for other organizations’ initiatives. It is one of the core activities of the GPML technical assistance program and is highly regarded by the AML/CFT community. The GPML Mentoring Program provides targeted on-the-job training that adapts international standards to specific local/national situations, rather than the traditional training seminar. GPML provides experienced prosecutors and law enforcement personnel who work side-by-side with their counterparts in a target country for several months at a time on daily operational matters to help develop capacity. By giving in-depth support upon request, the mentors have gained the confidence of the recipient institutions, which enables the achievement of concrete and significant outputs. In many countries, GPML mentors are the only locally placed AML/CFT experts, hence they are heavily relied upon by local offices of donor countries and organizations for advice in the creation and delivery of other donor AML/CFT projects.
The GPML Asset Forfeiture Mentor based in the Prosecutor General’s Office of Namibia provides assistance for the development and strengthening of asset forfeiture mechanisms in Southern Africa. The mentor continued to monitor the Prosecutor Placement Program, an initiative aimed at placing prosecutors from the region for a certain period of time within the Asset Forfeiture Unit of the National Prosecuting Authority (NPA) in South Africa. In 2010, two Namibian prosecutors were successfully placed, impacting positively on the management of large corruption cases in Namibia. In Botswana, a multi-agency agreement on new confiscation legislation has been reached and in Zimbabwe, with mentor’s assistance, agreement was reached to establish a specialized asset forfeiture unit within the office of the Director of Public Prosecution.
In West Africa, GPML’s main achievements in 2010 include the strengthening of the FIU operational capacities in Côte d'Ivoire, Guinea Bissau, Mali, Senegal and Sierra Leone, through the delivery of both training and equipment; and outreach to reporting entities in Côte d'Ivoire and Mali. Activities were completed in coordination with the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA).
The World Bank/GPML mentor based in Hanoi continued to strengthen operational capacities in Vietnam, Laos, and Cambodia. In Laos, the mentor took part in the drafting of the memorandum of understanding (MOU) for exchange of intelligence between the FIU and other authorities. Also, following the delivery of financial investigation courses, the number of corruption cases being investigated in Vietnam has increased, and case management and witness handling techniques have been adopted in Cambodia.
In October 2008, GPML assumed the coordination and administration of the Pacific Anti-Money Laundering Program (PALP), which provides AML/CFT advice, training and technical assistance to support the establishment, development and implementation of AML/CFT systems to 14 Pacific Island Forum.
In collaboration with the World Bank, GPML continued providing support to their joint AML/CFT mentor for Central Asia. In 2010, the main focus of the mentor’s work was capacity building related to the FIUs of Kazakhstan, Turkmenistan, Uzbekistan, and Tajikistan as well as domestic and international interagency cooperation. As a result of this work, the Kazakh FIU became an observer to the Egmont Group and the Uzbek FIU is also considering becoming an observer to the Egmont Group in 2011. In January 2010, Tajikistan established a FIU and with the mentor's assistance adopted its organizational structure and prepared a new draft AML/CFT law.
In Central America and the Caribbean, GPML contributed in 2010 to the Public-Private Partnership against Money Laundering. This innovative program, which is being piloted in Colombia, aims to integrate AML/CFT measures into business management. The alliance includes more than 20 members from the public (justice and regulators) and private (financial and commerce) sectors.
Mentoring & Financial Intelligence Units
GPML mentors worked extensively on the development and the implementation phases of FIUs in several countries in the Eastern Caribbean; Western, Southern and Eastern Africa; the Pacific; Central Asia; and the Mekong region. A major initiative that could have global implications for many FIUs is the development by the UNODC Information Technology Service, with substantive inputs from GPML, of an analytical and integrated database and intelligence analysis system for operational deployment in FIUs, called goAML (http://goaml.unodc.org). It is an IT solution for FIUs to manage their activities, particularly data collection, analysis, and dissemination. Version one of goAML is fully developed and is being installed in Namibia, Kosovo, Palestine, Nigeria, Tanzania, Bermuda, Denmark, Netherlands, Morocco and South Africa.
Financial Intelligence Unit Analyst Course
GPML” Financial Intelligence Unit Analyst Course is an opportunity for FIU analysts to develop knowledge and skills in the analysis process and the development of financial intelligence. The course focuses on analysis of suspicious transactions related to possible money laundering and terrorist financing; and addresses relationships between the FIU and agencies responsible for investigation of money laundering and terrorist financing. In 2010, the training was delivered in the Maghreb region with the following participating countries: Mauritania, Morocco, Tunisia and Algeria.
Other GPML Initiatives
Mock Trials: The AML/CFT Mock Trial Program is a key training activity, designed to support and enhance judiciary capacities in dealing with complex financial crime cases. Its long-term objective is also to develop a methodology and a prototype of mock trials that could be used in other developing countries. In2010, GPML replicated the Latin American training in Kazakhstan and Cambodia.
Financial Investigation Course: GPML also developed a Financial Investigation Course that aims to provide an opportunity for investigators to develop their knowledge and skills in financial investigation and to raise awareness of terrorist financing and money laundering methods. This course has a practical focus and is designed upon legal and procedural processes in the country of training. It gives participants the opportunity to learn the legislative aspects of financial crime, understand their powers, conduct searches and undertake interviews. The training was delivered in Vietnam, Cambodia, and Tanzania in 2010.
Illicit Financial Flows: As part of the UNODC Rainbow Strategy, which aims to reduce the supply, trafficking and consumption of opiates in Afghanistan and neighboring countries, GPML took the lead since January 2008 in a new initiative on “Financial flows to and from Afghanistan linked to the illicit drug production and trafficking”. In 2010, GPML developed a questionnaire to assess the proportion of money flows to/from Afghanistan and determine the destination and transit countries involved in the financial flows derived from Afghan opiates production and trafficking.
GPML is also working on a study on the illicit financial flows linked to cocaine production and trafficking in West Africa, with a view to determining their possible destabilizing effect on regional economies.
StAR: In September 2007, UNODC and the World Bank launched the Stolen Asset Recovery (StAR) Initiative aimed at assisting developing countries to recover stolen assets that have been sent abroad by corrupt leaders. Given the close links between money laundering and corruption, and the fact that building an AML system forms an integral part of good governance policy and asset recovery strategy, GPML participated in the development of several knowledge products including the Study on Barriers to Return of Stolen Assets and the Handbook on Asset Recovery which were both finalized in 2010.
Manual on Financial Instruments: The Manual for users and Employees of Financial Institutions on the Risks of Money laundering through Financial Instruments was developed in 2009 jointly with the UNODC Legal Advisory Programme for Latin America and the Caribbean (LAPLAC). The English version of the Manual was launched at the 18th EGMONT Plenary 2010, the CFATF XXXI Plenary, and at the International Conference on Financial Crime and Terrorism Financing 2010. Training modules based on the Manual and addressed to judges and prosecutors, were held within the StAR initiative in Colombia and Argentina and the Mock Trials on Money Laundering Program held in Bolivia. The manual is available in Spanish and English versions; Russian and French versions are being developed.
IMoLIN/AMLID: AMOLIN is a one-stop AML/CFT research resource, which is administered and managed by GPML on behalf of eleven partner organizations. Within IMoLIN is the Anti-Money Laundering International Database (AMLID), a unique password-protected service cataloguing AML/CFT laws on a global basis in an easily searchable format. The database has a collection (and analysis) of legislation from 102 jurisdictions. AMLID also provides an overview of the status of a country or territory in relation to the international conventions applicable to AML/CFT as well as the status of a country or territory in relation to bilateral/multilateral treaties or agreements on mutual legal assistance in criminal matters and extradition.
Cash Couriers: In November 2010, GPML conducted an expert working group on cash couriers with participants from Interpol, OSCE, WCO as well as representatives of FIUs, customs and other government agencies from 12 jurisdictions. The meeting focused on the development of a training program to be employed in the course of technical assistance to countries which have basic legislative structures in place to deal with the cross-border movement of cash, but lack the structural awareness and experience to effectively intercept cash couriers.
Development of AML/CFT Experts/Trainers: GPML commenced its project to imbed AML/CFT curricula into police and prosecution training institutions. This initiative involves design and development of AML/CFT training modules and the development of national AML/CFT subject matter experts, through a series of train–the-trainer and technical workshops. The final workshop involves national trainers delivering the course. Bangladesh is the pilot country for this project.
Computer Based Training: The Computer Based Training (CBT) includes high-quality voice, pictures, graphics, interactive video and animation, simulation and student tests. The AML CBT training is currently available in ten languages: Spanish, French, Russian, Arabic, Chinese (Mandarin), Amharic, Bahasa, Thai, English, and Vietnamese. In 2010, GPML, in partnership with the British High Commission, funded the establishment of a new CBT centre in Fiji.