Chapter 3 - International Agencies

Question 1

What is UNODC?

Answer 1

United Nations Office on Drugs and Crime

Question 2

What is the UNODC responsible for?

Answer 2

Helping members states combat illicit drugs, crime and terrorism.

Question 3

Which programme was established to help counter money laundering, proceeds of crime and and terror financing?

Answer 3

Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism 1997.

Question 4

What is the unit in the UNODC responsible for executing the programme?

Answer 4

The Law Enforcement, Organised Crime and Anti-Money Laundering Unit

Question 5

Which convention gave the UNODC the mandate to carry out the their work?

Answer 5

United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances 1988.

Question 6

What did the 1998 Political Declaration do?

Answer 6

Broadened the scope of the mandate given to the ODC to include all serious crime, not just drug-related offences.

Question 7

What is the broad objective of the Global Programme?

Answer 7

To strengthen the ability of member states to implement measures against money laundering and terror financing and to help detect, seize and confiscate illicit proceeds when requested.

Question 8

What did the IMF executive board mandate in 2006?

Answer 8

That every Financial Sector Assessment Programme (FSAP) and Offshore Financial Center (OFC) assessment incorporate a full AML/CTF assessment.

Question 9

What is an FSAP?

Answer 9

Financial Sector Assessment Programme?

Question 10

What is an OFC?

Answer 10

Offshore Financial Center.

Question 11

Which other bodies does the IMF work with?

Answer 11

FATF and FATF Style Regional Bodies (FSRBs)

Question 12

What does the IMF do when collaborating with the FATF and FSRBs?

Answer 12

Provide technical assistance and contribute to policy development and research.

Question 13

What is a TTF?

Answer 13

Tropical Trust Fund

Question 14

Who launched TTFs?

Answer 14

IMF

Question 15

What is the purpose of TTFs?

Answer 15

To finance technical assistance in AML/CTF.

Question 16

How much money had been pledged in the latest phase of TTFs to finance AML and CTF training?

Answer 16

$20million

Question 17

What are the 2 main organisations of the World Bank?

Answer 17

1. International Bank for Reconstruction and Development (IBRD)
2. International Development Association (IDA).

Question 18

Which of the two bodies of the World Bank provides grants to the poorest countries

Answer 18

International Development Association (IDA).

Question 19

How does the World Bank contribute to AML and CTF efforts?

Answer 19

Promoting measures to counter the flow of illicit funds into the financial systems of countries and arranging external assistance.

Question 20

Which additional sectors does the World Bank identify that AML and CTF needs to extend to?

Answer 20

Insurance, securities and money-changing sectors.

Question 21

What does StAR stand for?

Answer 21

Stolen Asset Recovery Initiative

Question 22

What is the Stolen Asset Recovery Initiative?

Answer 22

Partnership between the World Bank and UNODC to end safe havens for corrupt funds and facilitate the timely return of stolen assets to their country of origin.

Question 23

Approximately how much is stolen every year from developing countries through bribery, misappropriation of funds and other corrupt practices?

Answer 23

$20 billion to $40 billion

Question 24

What is the FATF’s main purpose?

Answer 24

To promote the national and international policies to combat money laundering and terrorist financing.

Question 25

How many countries partake in the development and implementation of FATF recommendations?

Answer 25

180

Question 26

As part of the 2012 reforms of the 40 FATF recommendations, what was merged?

Answer 26

The 9 Special Recommendations covering TF were combined with the 40 Recommendations on AML.

Question 27

As part of the 2012 reforms of the 40 FATF Recommendations, what were the main changes?

Answer 27

1. adding tax crimes as predicate offences for ML.
2. extend obligations on FIs to conduct enhanced due diligence on a risk basis to domestic PEPs.
3. increase info requirements for money transfers.
4. basic company information to be recorded and FIs to determine beneficial ownership and conduct CDD.
5. new step by step process to identify beneficial ownership and control of companies as part of CDD measures.

Question 28

What does the FATF do?

Answer 28

1. Standard setting - best practice and risk based approach.
2. Assess - Gauge country compliance with FATF standards.
3. Research - study ML and TF techniques
4. Respond to new threat - respond to new threats like proliferation financing.

Question 29

What is Recommendation 21?

Answer 29

FIs need to give special attention to business relationships with persons and FIs from countries which do not or insufficiently apply the FATF Recommendations. Where there are no apparent economic or visible lawful purpose for the transaction, the findings of due diligence should be established in writing.

Question 30

Which FATF body was established to combat proliferation financing?

Answer 30

FATF Working Group on Terrorist Financing and Money Laundering (WGTM) Project Team on Proliferation Financing (PFPT).

Question 31

What is the purpose of the Project Team on Proliferation Financing

Answer 31

To develop policy options to counter proliferation financing within the framework of the UN Security Council Resolutions.