In the process of mutual evaluations and subsequent follow-ups used by the Financial Action Task Force (FATF) to assess the quality of various jurisdictions' AML controls, the FATF:

The correct answer is D. conducts a peer review process whereby member countries assess the AML controls of other. The FATF conducts mutual evaluations--a peer review process--whereby member countries assess each other's AML/CFT systems. This includes on-site visits and reviews by international experts, with public reports containing recommendations for improvement. The process is not punitiv

Compliance Standards (International AML/CFT Standards and the role of FATF)

Question

Options

Aimposes economic sanctions on jurisdictions with lax AML controls to force them to strengthen
Bconducts on-site inspections of financial institutions in jurisdictions with lax AML controls to
Cpublishes annual reports ranking all member jurisdictions based on their self-assessment of AML
Dconducts a peer review process whereby member countries assess the AML controls of other

How the community answered

(35 responses)

A
11% (4)
B
6% (2)
C
3% (1)
D
80% (28)

Explanation

The FATF conducts mutual evaluations--a peer review process--whereby member countries assess each other's AML/CFT systems. This includes on-site visits and reviews by international experts, with public reports containing recommendations for improvement. The process is not punitive and does not impose sanctions. "FATF mutual evaluations are peer reviews in which experts from member countries assess another member's AML/CFT system and provide recommendations."

Topics

#FATF mutual evaluations#peer review#jurisdictional assessment#AML controls

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