The Financial Action Task Force (FATF) says it has published its final report on its survey to identify areas where divergent anti-money laundering and counter financing of terrorism (AML/CFT) rules or their implementation cause friction for cross-border payments.
Cross-border Payments – Survey Results on the Implementation of the FATF Standards is the product of a project launched by the FATF in February this year to study and mitigate the unintended consequences resulting from the incorrect implementation of the FATF standards.
Work in progress
At the FATF’s October plenary meetings, the task force concluded phase 1 of this project, which sought to understand the nature of possible unintended consequences of the FATF standards.
The plenary agreed to publish results of phase 1, which examines de-risking, financial exclusion, undue targeting of non-profit organisations, and the curtailment of human rights, with a focus on due process and procedural rights.
During the next phase of this project, the FATF will identify and consider potential options to mitigate these unintended consequences.
Obstacles revealed
The survey revealed that inconsistent national approaches create a range of obstacles, including identifying and verifying customer and beneficial owners and effective screening for targeted financial sanctions.
Obstacles were also identified in sharing of customer and transaction information where needed, and establishing and maintaining correspondent banking relationships.
Categories: Trade Based Financial crimes News
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