The Role of FATF Style Regional Bodies (FSRBs) in Combating Money Laundering and Financing of Terrorism

Combating Money Laundering and Financing of Terrorism

Contents

FATF Style Regional Bodies (FSRBs)

  1. Asia/Pacific Group on Money Laundering (APG)
  2. Caribbean Financial Action Task Force (CFATF)
  3. Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)
  4. Financial Action Task Force of Latin America (GAFILAT)
  5. Intergovernmental Action Group against Money- Laundering in West Africa (GIABA)
  6. The Middle East and North Africa Financial Action Task Force (MENAFATF)
  7. Eurasian Group (EAG)
  8. Eastern and Southern African Anti-Money Laundering Group (ESAAMLG)
  9. Task Force on Money Laundering in Central Africa (GABAC)

FATF Style Regional Bodies (FSRBs)

FATF Style Regional Bodies (FSRBs) are viewed as ‘local chapters’ that follow the FATF 40+9 recommendation, with mentions of regional socio-economic issues in their guidelines. The FSRBs work more at a regional level to raise awareness and offer technical aid in spreading FATF guidelines via peer pressure and mutual evaluations. Though FATF is the only AML-CFT standard-setting body, it depends heavily on FSRBs for inputs that affect FATF guideline amendments.

Following are the major identical tasks performed by all the FATF Style Regional Bodies. –

  1.   Mutual evaluation and peer review of the member nations to assess their implementation of 40 FATF Recommendations.
  2.   Study of Typologies, i.e., to deeply examine the region-specific money laundering, terrorism activities, and proliferation. Thus, to generate more precise reports on the regional situations to be shared with the FATF to determine a better problem-solving approach.
  3. To disseminate AML-CFT best practices amongst the legal, governmental, regulatory, private, and public enterprises.
  4.   Offer technical assistance to the member nations with AML-CFT countermeasure efforts and application of FATF standards.
  5. Help regional countries migrate to an advanced financial era of digital assets, central digital currencies, cryptocurrencies, etc.

The FSRB Members are as follows –

  1. Asia/Pacific Group on Money Laundering (APG)
  2. Caribbean Financial Action Task Force (CFATF)
  3. Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)
  4. Financial Action Task Force of Latin America (GAFILAT)
  5. Intergovernmental Action Group against Money- Laundering in West Africa (GIABA)
  6. The Middle East and North Africa Financial Action Task Force (MENAFATF)
  7. Eurasian Group (EAG)
  8. Eastern and Southern African Anti-Money Laundering Group (ESAAMLG)
  9. Task Force on Money Laundering in Central Africa (GABAC)

Asia/Pacific Group on Money Laundering (APG)

The autonomous provincial AML body was founded at the Fourth Asia/Pacific Money Laundering Symposium in Bangkok in February 1997. There are set Terms of Reference that the member nations have to follow; the Terms are distinguished by their constitutional framework and cultural values. At present, there are 41 APG members –

1. Afghanistan 21. Mongolia
2. Australia 22. Myanmar
3. Bangladesh 23. Nauru
4. Kingdom of Bhutan 24. Nepal
5. Brunei Darussalam 25. New Zealand
6. Cambodia 26. Niue
7. Canada 27. Pakistan
8. People’s Republic of China 28. Palau
9. Cook Islands 29. Papua New Guinea
10. Fiji 30. Philippines
11. Hong Kong, China 31. Samoa
12. India 32. Singapore
13. Indonesia 33. Solomon Islands
14. Japan 34. Sri Lanka
15. Korea, Republic of Korea (South Korea) 35. Chinese Taipei
16. Lao People’s Democratic Republic 37. Timor-Leste
17. Macao, China 38. Tonga
18. Malaysia 39. United States of America
19. Maldives 40. Vanuatu
20. Republic of Marshall Islands 41. Vietnam

 

Caribbean Financial Action Task Force (CFATF)

The Anti-Money Laundering measures in the Caribbean Basin mostly control the circulation of illicit drug proceeds from the drug-producing Andean region to the Caribbean islands. Following a series of international convenes – in Aruba 1990 and Jamaica 1992 (Kingston Ministerial Declaration) – 27 of the Caribbean and U.S. states joined hands to form CFATF and countermeasure ML-TF and mass proliferation of weapons in and across the Caribbean region.

As the international drug lords have hugely misused the islands’ financial institutions for structuring and integrating drug money, CFATF put nineteen AML-CFT recommendations to include seizure, forfeiture, investigation, conviction, and extradition rights to this intergovernmental body. Currently, the CFATF members include –

1. Anguilla 13. Grenada
2. Antigua & Barbuda 14. Guyana
3. Aruba 15. Haiti
4. Bahamas 16. Jamaica
5. Barbados 17. Montserrat
6. Belize 18. Saint Kitts and Nevis
7. Bermuda 19. Sint Maarten
8. British Virgin Islands 20. Suriname
9. Cayman Islands 21. Trinidad & Tobago
10. Curaçao 22. Turks and Caicos Islands
11. Dominica 23. Venezuela
12. Saint Lucia Saint Vincent & the Grenadines

Co-operating and Supporting Nations (COSUNs)

  1. Canada
  2. France
  3. Mexico
  4. Netherlands
  5. Spain
  6. United Kingdom
  7. United States

Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)

Established in Sept 1997 and amended multiple times afterward, the Council of Europe brought MONEYVAL for self and mutual evaluation of AML measures taken by the FATF and Non-FATF members across Europe. Countries and jurisdictions subject to MONEYVAL evaluation –

Members:

1. Albania 15. Liechtenstein
2. Andorra 16. Lithuania
3. Armenia 17. Malta
4. Azerbaijan 18. Republic of Moldova
5. Bosnia and Herzegovina 19. Monaco
6. Bulgaria 20. Montenegro
7. Croatia 21. Poland
8.  Cyprus 22. Romania
9.  Estonia 23. San Marino
10. Georgia 24. Serbia
11. Hungary 25. Czech Republic
12. Latvia 26. Slovak Republic
13. Slovenia 27. Slovenia
14. Slovenia

Non-members:

  1. Israel
  2. The Holy See
  3. The UK Crown Dependencies of Guernsey, Jersey and the Isle of Man
  4. The British Overseas Territory of Gibraltar

Financial Action Task Force of Latin America (GAFILAT)

It was established as a geopolitical body in December 2000 in Cartagena de Indias, Colombia, for training and mutual assessment of its member nations.

GAFILAT Members:

1. Argentina 10. Guatemala
2. Bolivia 11. Honduras
3. Brazil 12. Mexico
4. Chile 13. Nicaragua
5. Colombia 14. Panama
6. Costa Rica 15. Paraguay
7. Cuba 16. Peru
8. Dominican Republic 17. Uruguay
9. Ecuador  

Observer Jurisdictions:

  1. Canada
  2. France
  3. Germany
  4. Portugal
  5. Spain
  6. United States

Intergovernmental Action Group against Money-Laundering in West Africa(GIABA)

Economic Community Of West African States (ECOWAS) in December 1999 founded the GIABA to protect the financial systems and overall economy of the African states.

1. Republic of Benin 10. Republic of Liberia
2. Burkina Faso 11. Republic of Mali
3. Republic of Cape Verde 12. Republic of Niger
4. Union of Comoros 13. Federal Republic of Nigeria
5. Republic of Côte d’Ivoire 14. São Tomé and Príncipe
6. Republic of The Gambia 15. Republic of Senegal
7. Republic of Ghana 16. Republic of Sierra Leone
8. Guine-Bissau 17. Togolese Republic
9. Republic of Guinea  

 

The Middle East and North Africa Financial Action Task Force (MENAFATF)

Established in Manama, Bahrain, in the November of 2004, the MENAFATF is an independent, voluntary organization and an FATF-style regional body for the Middle East and North Africa. MENAFATF cooperates with international authorities like FATF and UNSC to fight ML-TF nuisances while preserving its regional constitutional framework and cultural values at the same time. MENAFATF members are —

1. Jordan 12. Somalia
2. United Arab Emirates 13. Iraq
3. Bahrain 14. Oman
4. Tunisia 15. Palestine
5. Algeria 16. Qatar
6. Djibouti 17. Kuwait
7. Saudi Arabia 18. Lebanon
8. Sudan 19. Libya
9. Syria 20. Morocco
10. Yemen 21. Mauritania
11. Egypt

 

Eurasian Group (EAG)

Established in Moscow in October 2004, the EAG goals are identical to other FRSBs, i.e., international cooperation, technical implementation of the FATF recommendations, mutual evaluation, and combating regional specific crimes by analyzing ML-TF typologies. The EAG members are –

1. Belarus 6. Russia
2. China 7. Tajikistan
3. India 8. Turkmenistan
4. Kazakhstan 9. Uzbekistan
5. Kyrgyzstan

 

Eastern and Southern African Anti-Money Laundering Group (ESAAMLG)

Launched in 1999 in Tanzania, the ESAAMLG consists of 18 eastern and south African nations coming together to combat AML-CFT in the region via effective regulatory and operational measures. Along with the conventional 40 FATF Recommendations, the high-level body also addresses specific regional issues, for instance, combating wildlife poaching and illicit trade of wildlife products. The member nations are –

1. Angola 10. Namibia
2. Botswana 11. Rwanda
3. Comoros 12. South Africa
4. Ethiopia 13. Swaziland
5. Kenya 14. Seychelles
6. Lesotho 15. Tanzania
7. Malawi 16. Uganda
8. Mauritius 17. Zambia
9. Mozambique 18. Zimbabwe

 

Task Force on Money Laundering in Central Africa (GABAC)

It was formed under the auspices of the Economic and Monetary Community of Central Africa. Founded in 2000, it received its FSRB status in October 2015; the group actively monitors its members’ compliance with FATF 40 Recommendations. GABAC member nations are –

  1. Cameroon.
  2. Central African Republic.
  3. Chad.
  4. Republic of the Congo.
  5. Democratic Republic of the Congo (DRC)
  6. Equatorial Guinea
  7. Gabon
Jay Raol
Jay Raol

Jay Raol has been a Media Manager, Entrepreneur, Political Analyst and an Environmentalist. He aspires to climb the mighty Himalayas, and learn a new language every year. He lives in the beautiful city of Carlsbad in Southern California and owns a great collection of books. He is on schedule to publish his first book; 'Thou Art, Dope'. Co-founded two companies that provide futuristic solutions to the world while being quite enthusiastic about helping and investing in technology startups.

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