Today, the problem of criminal money turnover is quite acute both at the regional level and at the global level - between countries. The fight against these illegal operations involved in various international organizations. In the article, we will consider in more detail the activities of the FATF - this is a group of financial measures to combat money laundering. It is difficult to overestimate its importance, since it is in every way opposed to the financing of criminal groups and terrorism around the world.
What it is
According to the general definition, the FATF is an international organization engaged in the preparation of world standards in the field of combating money laundering and financial support for terrorist organizations. In addition, the FATF is committed to evaluating national systems for compliance with established international standards. The main toolkit in the activities of the described organization is considered forty recommendations in the field of AML / CFT, which are carefully audited (approximately every five years). The president of the FATF group is Santiago Otamendi.
History of occurrence
As far back as 1989 of the last century, according to the decision of the G7 countries, the FATF was formed. This meant that an international institution had emerged, which was entrusted with the mission to develop and implement international AML / CFT standards. More than thirty-five states and two international organizations are part of the group. About twenty organizations and two powers act as observers.
Structure and types of activity
The FATF Group constantly holds plenary meetings at least three times a year, at which decisions are made. Also the tool of this institute is its working groups:
- by typology;
- on assessment and implementation;
- to combat the financing of terrorist organizations;
- to study international cooperation.
The FATF is also an organization that works actively with the World Bank, the International Monetary Fund and the United Nations Office to Combat Crime and Drug Trafficking. All these structures develop and implement programs to combat the laundering of illicit funds and investing in criminal activity.
One of the most important instruments of the FATF’s activity is several financial intelligence units (or FIU for short), which are responsible for collecting and studying financial information within one country in order to search and identify illegal money “migrations”.
FATF Membership
More than 35 countries are members of the world famous FATF Group. The participating countries are: Australia, New Zealand, Asia and Europe, USA, Mexico, Brazil, Argentina, South Africa, and the Russian Federation. The latter became part of the FATF since June 2003. In addition to countries, this includes two international organizations: the Gulf Cooperation Council and the European Commission.
It is noteworthy that it was at the initiative of Russia in 2004 that the Federal Financial Monitoring Service took part in the FATF's activities on behalf of the Russian Federation.
Features recommendations
The documents of the international institute contain materials, namely, a set of organizational and legal measures that must be taken in each country in order to create an effective regime to combat money laundering and the financing of terrorism. Such features of measures as universality and complexity are expressed in the following:
- the widest possible coverage of issues related to combating money laundering;
- Relationship with other international conventions, acts of relevant international organizations dealing with AML / CFT, UN Security Council resolutions and others;
- enabling countries to pursue a flexible policy, resolving these issues, taking into account national characteristics and the specifics of the legal system.
All FATF recommendations in no way replace similar resolutions of other organizations and do not duplicate them. On the contrary, they bring the principles together, playing a very important role in the codification of rules and norms in the field of AML / CFT. According to one of the resolutions of the Security Council, the forty recommendations of the FATF are considered mandatory for all, without exception, UN member countries.
How were developed
Initially, forty recommendations appeared when it was necessary in 1990 to develop rules and protect financial systems from criminals who laundered money from the sale of drugs. Later, namely after six years, the FATF standards were revised due to changes in technology, the emergence of new trends and ways to launder finances.
In October 2001, the FATF first included eight in the mandate, and then there were nine special recommendations on combating the financing of terrorism.
The second time, group standards were revised as early as 2003 and were recognized in one hundred and eighty countries. At the moment, they are considered the international standard for combating illegal money laundering and financing of terrorist organizations.
Subspecies of Recommendations
The entire list of the FATF (in particular standards) can be divided into several groups:
- coordination and policies regarding countering illicit cash flows;
- money laundering and confiscation;
- financing of terrorist organizations;
- a number of preventive measures;
- transparent ownership and activities of legal entities;
- international cooperation;
- responsibility and authority of relevant authorities and other measures.
Regional groups
In order to closely monitor interethnic cash flows and operations, and to stop criminal activity in this regard, there are special regional groups of the FATF type. They help spread international standards around the world. Each of the groups is engaged in its own specific region and studies the specifics of money circulation. In addition, mutual assessments of national financial systems are conducted for compliance with standards and research on current trends.
What are these groups? There are eight in total in the world: Asia-Pacific, a group in South America, Eurasian, a group in East and South Africa, a group in the Middle East and North Africa, a committee of experts of the European Council, the Caribbean and a group in West Africa. Another, against money laundering in Central Africa, has not yet received recognition and has not become part of the regional type FATF.
