The Financial Action Task Force
The Financial Action Task Force (FATF), created in 1989, 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 currently has 36 members, comprising 34 member countries and territories and two regional organizations, as follows: Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, India, Ireland, Italy, Japan, Luxembourg, Mexico, The Kingdom of the Netherlands (includes the Netherlands, Aruba, Curacao and Saint Maarten), New Zealand, Norway, 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.
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
The Asia/Pacific Group on Money Laundering (APG) was established in 1997. The APG has 41 members: Afghanistan, Australia, Bangladesh, Bhutan, Brunei Darussalam, Burma, Cambodia, Canada, China, 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, Samoa, Singapore, Solomon Islands, South Korea, Sri Lanka, Taiwan, Thailand, Timor-Leste, Tonga, United States, Vanuatu, and Vietnam.
The Caribbean Financial Action Task Force
The Caribbean Financial Action Task Force (CFATF) was established in 1992. CFATF has 29 members: Anguilla, Antigua and 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 and Nevis, St. Lucia, St. Maarten, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, Turks and Caicos Islands, and Venezuela.
The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism
The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) was established in 1997. MONEYVAL is comprised of 28 permanent members; two temporary, rotating FATF members; and two active observers. The permanent members are Albania, Andorra, Armenia, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Liechtenstein, Lithuania, Macedonia, Malta, Moldova, Monaco, Montenegro, Poland, Romania, Russian Federation, San Marino, Serbia, Slovak Republic, Slovenia, and Ukraine. The active observers are the Holy See and Israel. Temporary members, designated by the FATF for a two-year membership, are currently Austria and France.
The Eastern and Southern Africa Anti-Money Laundering Group
The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) was established in 1999. Fifteen countries comprise its membership: Botswana, Comoros, 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
The Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) was established in 2004. The EAG has nine members: Belarus, China, India, Kazakhstan, Kyrgyz Republic, Russia, Tajikistan, Turkmenistan, and Uzbekistan.
The Financial Action Task Force on Money Laundering in South America
The Financial Action Task Force on Money Laundering in South America (GAFISUD) was established in 2000. The 12 GAFISUD members are: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Paraguay, Peru, and Uruguay.
Inter-Governmental Action Group against Money Laundering in West Africa
The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) was 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
The Middle East and North Africa Financial Action Task Force (MENAFATF) was 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 (OAS), through the Inter-American Drug Abuse Control Commission (CICAD) under the Secretariat for Multidimensional Security (SMS), is responsible for addressing illicit drug trafficking and related crimes, including money laundering. CICAD’s training programs seek to enhance the knowledge and capabilities of law enforcement agencies to detect, investigate and prosecute these crimes in Latin America and the Caribbean. The U.S. Department of State, through its Bureau for International Narcotics and Law Enforcement Affairs, provided full or partial funding for many CICAD training activities.
Expert Group to Control Money Laundering
The Expert Group, comprised of legal and law enforcement specialists appointed by member states, met twice in 2012, focusing on two areas: cooperation among financial intelligence units (FIU) and law enforcement agencies, and the seizure and forfeiture of assets resulting from money laundering and related offenses. The CICAD Commission adopted several documents produced by the Expert Group: a comparative study of legislation in the countries in the hemisphere and a normative guide for the creation and development of specialized methods to administer seized and forfeited assets; a document on asset forfeiture and mechanisms to share forfeited assets; and a document on principles and best practices on the use and protection of FIU information and the coordination and integration of FIUs and criminal investigation agencies.
The CICAD Executive Secretariat sponsored or participated in 12 training events, both country- and region-specific, that reached 440 judges, prosecutors, public defenders, law enforcement agents and FIU analysts. In March, it delivered two workshops (Ecuador and Uruguay) to train FIU analysts in performing links and relationships analysis related to reporting on suspicious banking activity and cash transactions.
CICAD’s Anti Money Laundering section continued working jointly with the Inter-American Committee against Terrorism (OAS/CICTE) and organized workshops for judges and prosecutors on terrorism financing in the Dominican Republic and El Salvador.
As part of a coordinated effort by international organizations, CICAD joined with OAS/CICTE, the Executive Directorate of the United Nations Counter-Terrorism Committee, the Terrorism Prevention Branch of the United Nations Office on Drugs and Crime, and the Financial Action Task Force on Money Laundering in South America to create the MECOOR Initiative to develop joint capacity building projects to prevent and fight money laundering and terrorism financing. In 2012, they organized a national training event on combating money laundering and terrorism financing for judges and prosecutors in Santa Cruz de la Sierra, Bolivia, and a regional training event in Lima, Peru for judges and prosecutors from four countries.
In order to strengthen the capacities of investigators responsible for conducting investigations of money laundering and organized crime, three workshops on Special Investigative Techniques (SIT) took place in Paraguay (1) and Peru (2). The course is based on the analysis of money laundering convictions in which SIT played an important function in the investigation and prosecution process, with the discussion of cases, experiences and best practices with a team of CICAD experts.
Seized and Forfeited Assets
CICAD’s Project on the Management of Seized and Confiscated Assets in Latin America continued working with national governments, mainly El Salvador and the Dominican Republic. In June, it brought together in Costa Rica 50 participants from Brazil, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, and Panama to discuss the current consensus on best practices and procedures in this field. The CICAD Executive Secretariat developed and implemented coursework on the maintenance, custody and disposition of seized and forfeited assets with the goal of strengthening the technical capacity of the agencies involved. It delivered six workshops on proper and efficient management of these assets in order to prevent their loss or deterioration, training around 330 officers in Argentina, Chile, Costa Rica, the Dominican Republic, Guatemala, and Panama.
Technical Assistance and Cooperation
The CICAD Executive Secretariat followed through on technical assistance to the Government of Peru, initially reviewing the legal framework concerning money laundering offenses. It provided recommendations to the government for developing the National Commission on Seized Assets and drafting internal manuals for organization and operations. The CICAD Executive Secretariat and the Superintendency of Banking and Insurance (SBS) of Peru implemented an agreement for a regional training program on combating money laundering and terrorism financing, based in the SBS Lima facilities. Under this agreement, among other events, in October 2012 the center held a seminar on money laundering in the gaming industry for judges, prosecutors, FIU analysts and casino operators on topics related to the detection, analysis and investigation of suspicious transactions in the gaming industry.
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. Since 2001, GPML’s technical assistance work on counter-terrorist financing (CFT) also has been a priority. GPML now incorporates a focus on CFT in all its technical assistance work. In 2012, GPML provided long term assistance in the development of anti-money laundering/counter-terrorist financing (AML/CFT) programs to 42 countries. GPML also delivered 43 training events worldwide and three international conferences, often in partnership with other agencies and organizations. GPML trained 1,378 representatives of law enforcement agencies, financial intelligence units (FIUs), judicial authorities, and reporting entities.
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. By giving in-depth support upon request, the mentors have gained the confidence of the recipient institutions. 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. During 2012, GPML employed five mentors, two of which are shared with the World Bank. GPML mentors stationed in Central Asia, Kenya, South Africa, Vietnam, and West Africa worked extensively on the development and implementation of a wide variety of AML/CFT programs and procedures in individual countries and surrounding regions.
Illicit Financial Flows: In 2012, the tracking of illicit financial flows linked to piracy was a high priority. The focus was on Somalia and the Horn of Africa. GPML continued to raise awareness of the issue and highlight practical steps that member states in the region can take to combat illicit financial flows. GPML conducted several field research missions for the joint UNODC - World Bank - INTERPOL study on illicit financial flows linked to piracy.
As part of a UNODC initiative which aims to reduce the supply, trafficking and consumption of opiates in Afghanistan and neighbouring countries, GPML has taken the lead in combating financial flows to and from Afghanistan linked to the illicit drug production and trafficking. GPML conducted follow-up meetings from the 2011 technical meeting in Abu Dhabi, United Arab Emirates, on illicit financial flows and was instrumental in helping to organize the third round of Paris Pact meetings in Vienna, which resulted in the Vienna Declaration.
Asset Recovery: In 2012, GPML continued to support the establishment and operation of two asset forfeiture mechanisms. Dedicated attention has been applied to the development of the Asset Recovery Network for Southern Africa (ARINSA), and continued support has been given to the Red de la Recuperation de Activos de GAFISUD (RRAG). Based on the model of Europol’s Camden Asset Recovery Inter-Agency Network (CARIN), these regional mechanisms encourage collaboration, information sharing, and cooperation among prosecutors, investigators, and law enforcement dealing with asset confiscation and recovery at the national and regional levels. GPML also has supported efforts to launch regional asset forfeiture networks for prosecutors and financial investigators in the Asia-Pacific, and West Africa regions. A specific workshop on the recovery of stolen assets was provided in Senegal under the banner of the joint World Bank and UNODC Stolen Asset Recovery (StAR) Program.
Other GPML Tools and Services
AML/CFT Awareness Raising for Domestic Authorities, Compliance Officers and the Private Sector: This training focuses on raising awareness of AML/CFT vulnerabilities and reporting and compliance obligations. It encourages cross-agency operational cooperation, and builds bridges between the private and public sectors. In 2012, training was delivered in Cambodia, Cape Verde, Kenya, Mauritania, Niger, Senegal, and Togo.
National AML/CFT Risk Assessment Training: This training helps member states understand and implement Financial Action Task Force Recommendations on risk assessments. In 2012, training was delivered in Kazakhstan, the Kyrgyz Republic, and Serbia.
Financial Intelligence Unit Analyst Course: The course focuses on analysis of suspicious transactions related to possible money laundering and terrorist financing. The course also addresses relationships among the FIU and agencies responsible for investigation of money laundering and terrorist financing. In 2012, training was delivered in Algeria, Ethiopia, Jordan, and the Philippines.
Financial Investigation Course: 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. In 2012, the training was delivered in Cambodia, Laos, and Vietnam.
Countering Cash Couriers: GPML’s cash courier training provides an opportunity for border control, police and FIU staff to develop their knowledge and skills in the mechanisms for monitoring cross-border transportation of cash and bearer negotiable instruments as well as the identification and interdiction of cash couriers. In 2012, the course was delivered in Cambodia, Ethiopia, Kenya, Laos, and Vietnam, as well as to Afghanistan, Iran, Kazakhstan, Kyrgyz Republic, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan via regional training. GPML also developed a short course for Customs supervisors and managers, which it delivered in Indonesia and the Philippines. In addition, GPML assists national border control agencies in the development of operations manuals to serve as resource guides for border control officers.
Development of AML/CFT Experts/Trainers: This program, which can be customized for national law enforcement training institutions, involves the 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. In 2012 GPML conducted workshops in Tunisia and Vietnam.
Prosecutor Placement Program: This is a sustainable capacity building program designed to give newly appointed confiscation prosecutors a practical understanding of asset seizure and forfeiture practices by placing them in the office of an experienced and capable confiscation legal team. The Program operates in Southern Africa in conjunction with the South African National Prosecution Authority’s Asset Forfeiture Unit.
AML/CFT Advisory Services and Model Legislation: GPML has developed a model law for civil law legal systems in collaboration with UNODC’s Legal Advisory Program and the International Monetary Fund (IMF); and for common law legal systems, jointly with the Commonwealth Secretariat and the IMF, to assist countries in setting up their AML/CFT legislation. GPML provides legal advisory services to member states requesting assistance in modifying their domestic legislation. In 2012, assistance was provided to Ethiopia and Zimbabwe.
Training in Leveraging AML systems to Combat Trafficking in Persons and Smuggling of Migrants: The training for police, FIU staff, prosecutors, and specialists in investigation and victim counseling covers various aspects of financial investigation which can be used to identify and investigate organized crime groups involved in human trafficking and migrant smuggling. This training was delivered in 2012 to Cameroon.
Information Technology Solutions for AML/CFT
Computer Based Training: GPML has produced and disseminated 13 computer-based training modules on AML-related topics aimed at law enforcement personnel and other key officials involved in combating money laundering. These particular modules provide an overview of AML issues and a basic understanding of the methods and practical measures required to address them. Since 2003 over 50,000 people have been trained in 20 countries.
goAML: The program is an analytical and integrated database and intelligence analysis system for operational deployment in FIUs to assist them in managing their activities, particularly data collection, analysis, and dissemination. Version one of goAML has been installed in a range of countries, to include Bermuda, Denmark, Kosovo, Morocco, Namibia, Netherlands, Nigeria, Palestine, South Africa, and Tanzania.
IMoLIN/AMLID: GPML has developed and continues to maintain the International Money Laundering Information Network (http://www.imolin.org) on behalf of a partnership of 11 international organizations. IMoLIN provides a wide range of tools and AML/CFT-related information for professionals, including the Anti-Money Laundering International Database (AMLID), a compendium and analysis of AML/CFT legislation and regulations.
The Egmont Group of Financial Intelligence Units began in 1995 as a small group of national entities—today referred to as financial intelligence units (FIUs)—seeking to explore ways to cooperate internationally among themselves. The goal of the Egmont Group is to provide a forum for FIUs around the world to improve support to their respective governments in the fight against money laundering, terrorist financing, and other financial crimes. This support includes expanding and systematizing the exchange of financial intelligence, improving expertise and capabilities of personnel employed by such organizations, and fostering better and more secure communication among FIUs through the application of technology.
To meet the standards of Egmont membership, an FIU must be a centralized unit within a nation or jurisdiction established to detect criminal financial activity and ensure adherence to laws against financial crimes, including terrorist financing and money laundering. Today the FIU concept is an important component of the international community’s approach to combating money laundering and terrorist financing. The Egmont Group has grown dramatically from 14 units in 1995 to a recognized membership of 131 FIUs in 2012. The FIUs of Gabon, Jordan, Tajikistan, and Tunisia joined the Egmont Group in 2012.
The Egmont Group is organizationally structured to meet the challenges of the large membership and its workload. The Egmont Committee is an intermediary group between the 131 heads of member FIUs and the Egmont working groups. This Committee addresses the administrative and operational issues facing the Egmont Group. In addition to the Committee, there are five working groups: legal, operational, training, information technology, and outreach. The Egmont Group’s secure Internet system permits members to communicate with one another via secure email, requesting and sharing case information as well as posting and assessing information on typologies, analytical tools and technological developments.
As of 2012, the 131 members of the Egmont Group are the FIUs of Afghanistan, Albania, Andorra, Anguilla, Antigua and Barbuda, Argentina, Armenia, Aruba, Australia, Austria, Azerbaijan, Bahamas, Bahrain, Barbados, Belarus, Belgium, Belize, Bermuda, Bosnia and Herzegovina, Brazil, British Virgin Islands, Bulgaria, Cameroon, Canada, Cayman Islands, Chile, Colombia, Cook Islands, Costa Rica, Cote d’Ivoire, Croatia, Curacao, Cyprus, Czech Republic, Denmark, Dominica, Egypt, El Salvador, Estonia, Fiji, Finland, France, Gabon, Georgia, Germany, Gibraltar, Greece, Grenada, Guatemala, Guernsey, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Jordan, Kazakhstan, Kyrgyz Republic, Latvia, Lebanon, Liechtenstein, Lithuania, Luxembourg, Macao, Macedonia, Malawi, Malaysia, Mali, Malta, Marshall Islands, Mauritius, Mexico, Moldova, Monaco, Mongolia, Montenegro, Morocco, Netherlands, New Zealand, Nigeria, Niue, Norway, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Samoa, San Marino, Saudi Arabia, Senegal, Serbia, Singapore, Slovak Republic, Slovenia, Solomon Islands, South Africa, South Korea, Spain, Sri Lanka, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sweden, Switzerland, Syria, Tajikistan, Taiwan, Thailand, Tunisia, Turkey, Turks and Caicos, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Vanuatu, and Venezuela.