Chapter 1: Designing an Effective AML/CFT Supervisory Framework
Notes 1. The terms “country” and “jurisdiction” are used interchangeably in this handbook, and such terms also mean a territory or other political subdivision of a country or jurisdiction. 2. According to the Egmont Group, which is the international body for FIUs, an FIU is “a central, national agency responsible for receiving (and, as permitted, requesting), analyzing and disseminating to the competent authorities, disclosures of financial information: (i) concerning suspected proceeds of crime and potential financing of terrorism, or (ii) required by national legislation or regulation, in order to counter money laundering and terrorism financing.” See www.egmontgroup.org. 3. FATF defines DNFBPs to be casinos; real estate agents; dealers in precious metals or stones; lawyers, notaries, other independent legal professionals and accountants (under certain circumstances); and trust company service providers (with respect to certain services). See Glossary of FATF Forty Recommendations on Money Laundering for more specific details. www.fatf-gafi.org. 4. FATF recommendation 1. 5. The Basel Committee on Banking Supervision is a committee of banking supervisory authorities that was established by the central bank Governors of the G10 countries in 1975. It is made up of senior representatives of banking supervisory authorities and central banks from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom, and the United States. It usually meets at the Bank for International Settlements in Basel, where its permanent secretariat is located. 6. www.bis.org/list/bcbs/tid_25/index.htm. 7. BCP principle 18. 8. FATF recommendations 5 and 6. 9. These aspects are fully discussed in annex 1. 10. See Basel Committee Core Principles, Methodology, principle 1(2). 11. The FATF international standards do not specifically address governance and accountability but do embrace the BCPs. Principle 1 of the BCP states that the bank supervisor should have sound governance and be accountable for the discharge of its duties. See www.bis.org/publications. 12. FATF recommendation 30 requires a country to have processes in place to ensure that the staffs of all competent authorities involved with AML/CFT are of high integrity. 13. FATF recommendation 29. 14. FATF recommendation 4: “Countries should ensure that financial institution secrecy laws do not inhibit implementation of the FATF Recommendations.” 15. It is recognized that in some countries, privacy legislation may prohibit the supervisor from having access to individual STR files. 16. FATF recommendation 17.
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