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Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT)

Assessments

Assessments: An Overview

One of the three main areas of the IMF’s work in connection with anti-money laundering and combating the financing of terrorism (AML/CFT) is the assessment of member countries’ compliance with the international standard as contained in the FATF 40+9 Recommendations. Assessors look at the legal, institutional and supervisory framework of a country, identify the strengths and weaknesses of a system, evaluate whether measures in place at the time of the assessment mission are effectively implemented and recommend action to correct deficiencies and come into compliance with the FATF standard. Information gathered through the assessment process is often used to develop a technical assistance program for the assessed country.

A key tool used by assessors to conduct their work is the Methodology for Assessing Compliance with the FATF 40+9 Recommendations (“Methodology”). For each of the FATF 40+9 Recommendations, the Methodology sets forth a number of criteria to help assessors in determining whether a country is in compliance with the standard. The Methodology was developed by the Financial Action Task Force (FATF) together with the IMF, The World Bank and the FATF-Style Regional Bodies (FSRBs). It was endorsed by the IMF Executive Board in March 2004.

A Detailed Assessment Report (DAR) provides a description and analysis of laws and regulations in place at the time of the assessment mission or immediately thereafter as well as recommendations for strengthening a country’s system and bringing it into compliance with the FATF standard. A DAR also provides ratings of the assessed country’s levels of compliance with each of the FATF 40+9 Recommendations. Another document prepared in the course of an assessment is the Report on the Observance of Standards and Codes (ROSC), which summarizes the main findings of the DAR.

The IMF conducts AML/CFT assessments both as part of the Financial Sector Assessment Program (FSAP) and Offshore Financial Centers Assessment (OFC) program. In contrast to other financial sector codes and standards, AML/CFT ROSCs and DARs are also prepared by other assessor bodies and organizations, namely the FATF and FSRBs with which the IMF and the World Bank cooperate. IMF and World Bank AML/CFT assessments are also recognized as FATF and FSRB mutual evaluations for the purposes of these organizations’ assessment programs. The IMF’s goal is to conduct about six to seven country assessments annually.

Materials for countries being assessed and assessors

FATF 40+9 Recommendations

Methodology for Assessing Compliance with the FATF 40+9 Recommendations

IMF Template for Detailed Assessment Questionnaire

Assessment Reports published by FSRBs

Asia/Pacific Group on Money Laundering (APG) Mutual Evaluation Reports - Round 2

Caribbean Financial Action Task Force (CFATF) Documentation

Eastern and South African Anti Money Laundering Group (ESAAMLG)

Eurasian Group (EAG) Documents

Financial Action Task Force of South America Against Money Laundering (GAFISUD)

Groupe Inter-Gouvernemental d'Action Contre le Blanchiment de l'Argent en Afrique (GIABA)

Middle East & North Africa Financial Action Task Force (MENAFATF) Publications

Select Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL) Evaluations

Other International Organizations and Bodies

Financial Action Task Force (FATF)

Basel Committee on Banking Supervision

Council of Europe

Egmont Group of Financial Intelligence Units

European Union (EU)

International Association of Insurance Supervisors (IAIS)

International Organization of Securities Commissions (IOSCO)

INTERPOL

Offshore Group of Banking Supervisors (OGBS)

United Nations Office on Drugs and Crime (UNODC)

United Nations Counter-Terrorism Committee and Executive Directorate (UNCTED)

World Bank