Internatonal Bodies Flashcards
Explain why there’s a global need to combat ML
Compelling social & macro economic reasons to deter people from ML
Little incentive for single jurisdiction to place forefront of AML regulation / result in industry at competitive disadvantage as funds flow other jurisdictions with lower controls
Therefore global approach required
Outline FATF on ML
Established by G7 summit to coordinate international response to ML issues
34 member jurisdictions & 2 major regional orgs represent global centres
Mandate sets standards & effective implantation of legal, reg & operational measures to combat threats to integrity / aim to protect system of misuse
Tasks
- analyses threats / methods involved using
- examine impact of measures designed to combat
- support orgs / monitor members - compliance
- develop standards (recommendations)
- engage with non cooperative jurisdictions to encourage implantation
Outline history of FATF recommendations
40 initial = drug ml
reviewed 9 added = terrorism
New recommendations address areas; tax evasion, weapons of mass destruction, transparency issues
*no legal enforcement to follow / no offical sanctions
Highly influential organisation pressures to implement same standards / positive public appearance
Outline the NCCT initiative
Increase compliance with recommendations
Report identified 23 jurisdictions hadn’t implemented sufficient measures to meet standards
Peer pressure / media attention to implement/ 2006 last country removed from list
Initiative attracted criticism for lack of consistency / FATF published list of jurisdictions with stragteic standards, those haven’t made progress to address or haven’t at all taken plan to address such
Achieved same result / non compliance lead to sanctions designed to encourage implementing / if failed led to termination of membership
Outline other influential bodies for combatting AML/CFT
Vienna Convention - traffic of narcotic dugs & psychopaths substances
Palermo convention - organised crime
European Union
The International Monetary Fund
The UN office on drugs & crime
GIFCS
BCBS
