The Asian Development Bank (ADB) has launched a Trade Finance Scorecard to curb money laundering and terrorist financing.
The scorecard is based on feedback from financial services professionals and regulators and is designed to complement existing tools such as the Financial Action Task Force’s recommendations against money laundering and terrorist financing.
The Trade Finance Scorecard focuses on issues related to the interpretation and implementation of and compliance with regulations designed to curb money laundering and the financing of terrorism in the context of correspondent banking and trade financing.
Scores are assigned on two levels. Firstly, at a macro level, to identify characteristics of effective regulation that could be strengthened. Secondly, at a micro transactional level, to highlight specific challenges that can be addressed in the shorter term.
Elements of effective regulation outlined in the first level are scored out of ten on seven criteria: consistency, risk alignment, design, stakeholder communication, technology and data, enforcement and quality control.
These criteria are used to assess working-level issues in the second level.
Categories: Trade Based Financial crimes News