{ "title": "IMF Executive Board Discusses the Fund’s Strategy on Anti-Money Laundering and Combating the Financing of Terrorism", "publication": "IMF News, December 5, 2023", "sourceUrl": "https://www.imf.org/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft", "canonical": "https://www.imf.org/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft", "overlayPath": "/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft/index.md", "summary": "On November 20, 2023, the Executive Board of the International Monetary Fund (IMF) discussed the staff report: “Review of the Fund’s Strategy on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT).”", "publishDate": "2023-12-05", "sections": [ { "heading": "Overview", "content": "- Event: Executive Board discussion of the staff report “Review of the Fund’s Strategy on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT).”\n- Date of discussion: November 20, 2023.\n- Press Release No.: 23/415.\n- Publication date of landing page: December 5, 2023.\n- Media contact: PRESS OFFICER: Pavis Devahasadin; Phone: +1 202 623-7100; Email: MEDIA@IMF.org." }, { "heading": "Staff report scope and analytical approach", "content": "- The report:\n - Takes stock of implementation of the Fund’s AML/CFT program adopted in 2018.\n - Identifies lessons learned.\n - Proposes the way forward for the Fund’s AML/CFT strategy.\n- Workstreams analyzed: surveillance, financial sector assessment programs (FSAPs), Fund-supported programs, AML/CFT assessments, and capacity development (CD).\n- Emphasis on coordination: describes integration of AML/CFT across other Fund policies and close coordination with other stakeholders to leverage synergies and avoid duplication." }, { "heading": "Key findings on coverage and methodological developments", "content": "- Since the 2018 review, coverage of financial integrity issues has increased across all workstreams.\n- Staff enhanced its understanding of ML/TF risks and the macroeconomic impact of financial crimes using a wide range of quantitative and qualitative data.\n- Surveillance and related conditionality in Fund-supported programs show increased coverage of AML/CFT issues.\n- Staff provided input on AML/CFT in every FSAP, making use of flexibility in scope and depth.\n- Regional, multi-country, and thematic CD projects increased, providing assistance to a broader range of countries with greater targeted flexibility.\n- Staff participation in AML/CFT assessments by the FATF Global Network contributed to assessment efforts and to training assessors and assisting countries preparing for assessments." }, { "heading": "Current assessment practice and policy", "content": "- Current policy: conduct one to two assessments per year.\n - Actual delivery: policy has allowed staff to deliver one assessment per year given the length of these exercises.\n- Staff increased participation in review of the quality and consistency of draft assessment reports prepared by other assessor bodies.\n- Staff participated in an assessment led by a FATF-style regional body pursuant to the policy endorsed by the Board in 2020." }, { "heading": "Executive Board assessment and guidance", "content": "- Directors’ general views:\n - Stressed that addressing ML, TF, and proliferation financing risks is integral to the Fund’s mandate to support integrity and stability of the international financial system and member countries’ economies.\n - Welcomed staff’s stocktaking and lessons learned.\n - Agreed with continuing to enhance staff’s understanding of financial integrity risks and focus on assessing and mitigating negative macroeconomic impacts.\n - Supported reliance on a multipronged approach and synergies across Fund workstreams.\n- Surveillance:\n - Directors supported staff putting greater focus on linkages between financial integrity issues and fiscal, financial sector, and structural priorities.\n - Coverage to continue under current principles of engagement; deepen coverage in an evenhanded manner, commensurate with risks, mandatory when issues are macro-critical and voluntary when requested by the member.\n- FSAPs:\n - Directors concurred that mandatory coverage of AML/CFT issues with flexibility in scope and depth remains appropriate.\n - Supported greater emphasis on the nexus between financial integrity and financial stability.\n- Fund-supported programs:\n - Directors agreed staff will continue to use its judgment in designing financial integrity and AML/CFT conditionality, aligned with program objectives and principles of criticality, parsimony, and avoiding cross conditionality.\n - Noted importance of understanding political economy constraints and need for flexibility and technical support for members with capacity weaknesses; some Directors preferred tailored CD support.\n- Capacity Development (CD):\n - Directors welcomed CD activities and agreed staff should continue to provide comprehensive CD support with greater flexibility and deepen support for other Fund workstreams.\n - Noted that better understanding of ML/TF risks will allow CD program development in line with evolving risks such as digital money, laundering of the proceeds of corruption, tax evasion, and environmental crimes.\n - Reiterated need to coordinate with other technical assistance providers to maximize efforts and avoid duplication.\n- External engagement:\n - Directors supported deepening engagement with a broader range of external stakeholders, including international and regional organizations and civil society, and leveraging global and regional partnerships while focusing on the Fund’s comparative advantage." }, { "heading": "Assessments, resourcing, and medium-term planning", "content": "- Directors highlighted the importance of continued engagement in AML/CFT assessments with a focus on quality and consistency.\n- General support or openness to staff’s proposal to increase assessment-related work gradually:\n - Proposed target from FY 2028 onward: deliver two Fund-led assessments and participate in one FSRB-led assessment per year.\n - Any increase subject to: reallocation of resources to enable the increase and without prejudice to other core workstreams.\n- Some Directors considered the current pace of assessments broadly adequate.\n- Directors requested consideration of the proposal to increase assessments in the context of the medium term budget process." }, { "heading": "Way forward and next review", "content": "- The paper proposes deeper integration of financial integrity issues into the Fund’s core functions with enhanced focus on AML/CFT issues that have macroeconomic impact.\n- Directors agreed staff should continue to integrate financial integrity issues in other Fund policies.\n- Timing of next review: expected to be completed within the next five years.\n\nSource: IMF Executive Board Discusses the Fund’s Strategy on Anti-Money Laundering and Combating the Financing of Terrorism, Press Release No. 23/415 (December 5, 2023).\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- The IMF and the Fight Against Money Laundering and the Financing of Terrorism\n- Press Releases\n- PRESS CENTER\n- http://www.imf.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft" } ], "bullets": [ "[Markdown version](/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft/index.md)", "[Structured JSON version](/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft/index.json)", "[Bundle manifest](/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft/bundle-manifest.json)", "Published: December 5, 2023", "Event: Executive Board discussion of the staff report “Review of the Fund’s Strategy on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT).”", "Date of discussion: November 20, 2023.", "Press Release No.: 23/415.", "Publication date of landing page: December 5, 2023.", "Media contact: PRESS OFFICER: Pavis Devahasadin; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.", "The report:", "Workstreams analyzed: surveillance, financial sector assessment programs (FSAPs), Fund-supported programs, AML/CFT assessments, and capacity development (CD).", "Emphasis on coordination: describes integration of AML/CFT across other Fund policies and close coordination with other stakeholders to leverage synergies and avoid duplication.", "Since the 2018 review, coverage of financial integrity issues has increased across all workstreams.", "Staff enhanced its understanding of ML/TF risks and the macroeconomic impact of financial crimes using a wide range of quantitative and qualitative data.", "Surveillance and related conditionality in Fund-supported programs show increased coverage of AML/CFT issues.", "Staff provided input on AML/CFT in every FSAP, making use of flexibility in scope and depth.", "Regional, multi-country, and thematic CD projects increased, providing assistance to a broader range of countries with greater targeted flexibility.", "Staff participation in AML/CFT assessments by the FATF Global Network contributed to assessment efforts and to training assessors and assisting countries preparing for assessments.", "Current policy: conduct one to two assessments per year.", "Staff increased participation in review of the quality and consistency of draft assessment reports prepared by other assessor bodies.", "Staff participated in an assessment led by a FATF-style regional body pursuant to the policy endorsed by the Board in 2020.", "Directors’ general views:", "Surveillance:", "FSAPs:", "Fund-supported programs:", "Capacity Development (CD):", "External engagement:", "Directors highlighted the importance of continued engagement in AML/CFT assessments with a focus on quality and consistency.", "General support or openness to staff’s proposal to increase assessment-related work gradually:", "Some Directors considered the current pace of assessments broadly adequate.", "Directors requested consideration of the proposal to increase assessments in the context of the medium term budget process.", "The paper proposes deeper integration of financial integrity issues into the Fund’s core functions with enhanced focus on AML/CFT issues that have macroeconomic impact.", "Directors agreed staff should continue to integrate financial integrity issues in other Fund policies.", "Timing of next review: expected to be completed within the next five years.", "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)", "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)", "[The IMF and the Fight Against Money Laundering and the Financing of Terrorism](https://www.imf.org/en/about/factsheets/sheets/2023/fight-against-money-laundering-and-terrorism-financing)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[http://www.imf.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft/index.md", "json": "/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft/index.json", "bundleManifest": "/en/news/articles/2023/12/04/pr23415-imf-executive-board-discusses-fund-strategy-aml-cft/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T02:33:34.967Z" }