Procedures for the FATF Fourth Round of AML/CFT Mutual Evaluations
The FATF is conducting a fourth round of mutual evaluations for its members based on the FATF Recommendations (2012), and the Methodology for Assessing Compliance with the FATF Recommendations and the Effectiveness of AML/CFT Systems (2013), as amended from time to time. This document sets out the procedures that are the basis for that fourth round of mutual evaluations.
The scope of the evaluations will involve two inter-related components for technical compliance and effectiveness.
The technical compliance component will assess whether the necessary laws, regulations or other required measures are in force and effect, and whether the supporting AML/CFT institutional framework is in place.
The effectiveness component will assess whether the AML/CFT systems are working, and the extent to which the country is achieving the defined set of outcomes.
The general principles and objectives that govern FATF mutual evaluations, as well as AML/CFT assessments conducted by the FATF-Style Regional Bodies (FSRBs), IMF or World Bank are to:
- Produce objective and accurate reports of a high standard in a timely way.
- Ensure that there is a level playing field, whereby mutual evaluation reports (MERs), including the executive summaries, are consistent, especially with respect to the findings, the recommendations and ratings.
- Ensure that there is transparency and equality of treatment, in terms of the assessment process, for all countries assessed.
- Seek to ensure that the evaluation and assessment exercises conducted by all relevant organisations and bodies (FATF, IMF, World Bank, FSRBs) are equivalent, and of a high standard.
- (i) be clear and transparent, (ii) encourage the implementation of higher standards, (iii) identify and promote good and effective practices, and (iv) alert governments and the private sector to areas that need strengthening
- Be sufficiently streamlined and efficient to ensure that there are no unnecessary delays or duplication in the process and that resources are used effectively.
Based on these procedures, the FATF and FSRBs will jointly develop Consolidated processes and procedures for mutual evaluations and follow-up, see also the High-Level Principles & Objectives for FATF and FSRBs , C. FATF Brand Issues, gg).
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