The Financial Action Task Force concluded a week-long meeting in Paris today, announcing that Grenada has been removed from its list of Non-Cooperative Countries and Territories, that it is withdrawing counter measures with respect to the Ukraine, and that a date has been set for counter measures against the Philippines. The international body of 29 member countries and governments also reported on anti-money laundering and the countering of terrorism financing initiatives.
Grenada was removed from the NCCT list as a result of the implementation of significant reforms to its anti-money laundering system, but the organisation announced that it will continue to monitor the implementation of that system.
FATF members decided to withdraw the application of additional counter measures with respect to Ukraine as a result of the recent enactment by Ukraine of comprehensive anti-money laundering legislation that addresses the main deficiencies identified by the FATF in 2001 and reaffirmed in December 2002. Ukraine will remain on the list of NCCTs until it has implemented, effectively, its new anti-money laundering legislation. According to a release issued in Paris today, FATF President, Jochen Sanio, said, *”This is a significant success for the FATF and Ukraine in the fight against money laundering. Close monitoring of implementation issues will be crucial in determining an appropriate time for Ukraine’s removal from the NCCT list.”*
On the matter of the Philippines, the FATF has recommended that its members impose additional counter measures because of the *”failure of the Philippines to enact legislation to address previously identified deficiencies in their anti-money laundering regime”.* Reportedly, the FATF has called upon the Philippines Government to enact the appropriate legislative amendments by 15 March 2003. Failure would lead to counter measures against the Philippines as of that date.
The current list of NCCTs is as follows: Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines, St. Vincent and the Grenadines, and Ukraine. The FATF says it will review the situation of each NCCT at its next Plenary meeting on 18-20 June 2003.
**Typologies Experts Group**
The report of the November 2002 meeting of the FATF’s Typologies Experts Group has been presented. It outlines current trends and emerging threats in money laundering. *(See link below)*
The FATF Release says this year’s report identifies problems related to terrorist financing schemes, notably the misuse of non-profit organisations and informal money or value funds transfer systems (such as hawala, hundi, fei-chien and the black market peso exchange). The report also highlights the money laundering vulnerabilities in the securities sector; and the links between the diamond, gold and precious metals trade and money laundering and terrorist financing.
FATF members reiterated their firm intention to complete the review of the Forty Recommendations against money laundering in June 2003 on the occasion of their next Plenary meeting in Berlin.
**Eight Special Recommendations**
The FATF continues to take further steps to counter the financing of terrorism by developing guidance to implement its Eight Special Recommendations. The FATF has issued an interpretative note on Special Recommendation VI to prevent informal transfer systems and funds from being misused by terrorists. It also issued an interpretative note on FATF Special Recommendation VII, which focuses on the abuse of wire transfers by terrorists and their financiers. *(See links below)*
The FATF also is pursuing its global self-assessment exercise to ensure world-wide acceptance and implementation of the Eight Special Recommendations. The FATF continues to urge all countries in the world to participate in the self assessment exercise on terrorist financing, and to provide the relevant information to the FATF. In this respect, the FATF will also continue to work in close co-operation with the United Nations Security Council Counter Terrorism Committee.
**IMF / World Bank Collaboration**
The FATF has been collaborating with the International Monetary Fund (IMF) and the World Bank to assess anti-money laundering and counter terrorist financing measures. In Paris today, it announced that it will carry out six mutual evaluations in the coming months using the agreed common methodology – all before the end of 2003.
In this context, the FATF looks forward to the outcome of the use of this methodology by the IMF and the World Bank in their Financial Sector Assessment Program (FSAP) and Offshore Financial Centre (OFC) assessments.