Which of the following is among the Financial Action Task Force criteria defining non-cooperative countries and territories?

Question

Options

• Ainadequate rules for the licensing and creation of financial institutions, including assessing
• Beffective laws regarding multiple sources of beneficial owner identification by a financial institution
• Cthe presence of bank secrecy provisions reasonably balanced against the government's need for
• Dthe establishment of a system for reporting "unusual" transactions, instead of "suspicious", as

• A
  69% (18)
• B
  19% (5)
• C
  8% (2)
• D
  4% (1)

Explanation

One of the criteria that the Financial Action Task Force (FATF) uses to define non-cooperative countries and territories (NCCTs) is the lack of adequate rules for the licensing and creation of financial institutions, especially those with no or minimal presence, and the lack of effective systems for checking the backgrounds of managers and beneficial owners of such institutions. This criterion aims to prevent the establishment and operation of shell banks or other entities that can be used for money laundering or terrorist financing purposes. The FATF requires that countries and territories should have laws and regulations that ensure that financial institutions are subject to adequate licensing or registration procedures, that the authorities have the power to deny or revoke licenses or registrations, and that the authorities have access to information on the identity, reputation, and financial soundness of the managers and beneficial owners of financial institutions.

No community discussion yet for this question.