FATF Annual Report 2012-2013

FATF Annual Report: 2012-2013

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Under the Presidency of Bjørn Aamo of Norway, the FATF achieved a key milestone with the adoption of the revised Methodology for assessing compliance with the FATF Recommendations and the effectiveness of anti-money laundering and countering the financing of terrorism (AML/CFT) systems.   Future assessments will not only focus on technical compliance with the FATF Standards, they will also look at how effective a country’s AML/CFT measures are in practice.  

Other outcomes during this Plenary year were the adoption of Best Practices papers on Combating the abuse of non-profit organisations, Confiscation (Recommendations 4 and 38) and a Framework for Ongoing Work on Asset Recovery and Targeted financial sanctions related to terrorism and terrorist financing (Recommendation 6).

This Plenary year the FATF adopted Guidance papers on a Risk-based approach to prepaid cards, mobile payments and internet-based payment services, Anti-money laundering and terrorist financing measures and financial inclusion, Politically exposed persons (Recommendations 12 and 22) and the Implementation of financial provisions of UNSCRs to counter the proliferation of weapons of mass destruction.

The FATF also published Typologies reports to inform about money laundering and terrorist financing trends and vulnerabilities, such as Money laundering and terrorist financing vulnerabilities of legal professionals and Money laundering and terrorist financing related to counterfeiting of currency.  The National money laundering and terrorist financing risk assessment, which will assist countries in the conduct of risk assessment at the country or national level.

The FATF continued its process for following up on the mutual evaluations conducted in the third round.  Hong Kong,China exited from the follow-up process in October 2012 and Finland, India and Ireland exited in June 2013.