Capacity Development for CARIFORUM Members
Component A- Financial Compliance
Implementation of the Mutual Evaluation Programme
Financial Compliance support CARIFORUM Member countries
The Overall objective of the project, Capacity Development for CARIFOURM Member States on Financial Compliance, Asset Recovery and Cybercrime, is to contribute to the improvement of safety and security in the CARIFORUM region.
In September 2018 the European Union (EU) and the Caribbean Financial Action Task Force (CFATF) signed a funding agreement for action regarding the Financial Compliance aspect of the regional programme. The Project (Implementation of the Mutual Evaluation Programme) is intended to assist countries in the Caribbean region to improve their levels of compliance with the Financial Action Task Force’s (FATF) 40 Recommendations. As such, the action is directly aimed at improving countries capacity and preparedness as the region progresses in the fourth round of evaluations, which relate to not only technical compliance but also effectiveness of AML/CFT systems.
This Project is set to execute action for qualifying CFATF Members and the Dominican Republic in four key areas:
Support for executing Mutual Evaluations (Standards Training, Pre- Assessment Training, Pre- Onsite Training and the cost of the On-site assessment);
Delivery of a series of regional workshops and seminars to build AML/CFT technical capacity;
Public education and awareness activities; and
Execution of an ICT platform called “Vision 2022” which will allow the CFATF membership to access resource databases and collaborate. An AML/CFT E-Learning tool will also be a significant feature of this platform.
The project’s regional activities are set to begin in January 2019 and will be implemented by a four- member project team comprising of a Project Manager, a Senior Project Officer, a Senior ICT Officer and a Communications consultant.
WHAT’S INSIDE THIS ISSUE:
Financial Compliance support for CARIFORUM Member countries.
The De-risking Factor.
What is Mutual Evaluation Mission Support?
Quarterly calendar of Events
The De-risking Factor
The Financial Action Task Force (FATF), defines de-risking as “the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid, rather than manage, risk”. The risk referred to in “de-risking” is a customer or client who could pose a higher than average risk of Money Laundering (ML) or Terrorism Financing (TF) or that processing transactions might result in a breach of sanctions regulation. In 2015, the World Bank (WB) in cooperation with the Financial Stability Board (FSB), Committee on Payments and Market Infrastructure CPMI, and the G20 Partnership for Financial Inclusion conducted two surveys on De- risking practices. Both surveys found that de-risking is indeed happening in pockets around the world – but its effects are unevenly distributed, with some regions more affected than others. They noted that smaller countries with limited financial markets are particularly vulnerable to de- risking practices, and were seeing evidence of this, notably in the Caribbean region. The fourth round of Mutual Evaluations commenced in January 2015 and based on the outcomes of previous evaluations there is a clear need for countries to improve their level of compliance with the FATF’s 40 recommendations. The provision of Mutual Evaluation Mission support through the 11th EDF, will play a key role in improving compliance.
What is Mutual Evaluation Mission Support?
A critical component of the Project: “Implementation of the Mutual Evaluation Programme” is the provision of support for CARIFOURM Member countries in executing their mutual evaluations. The Project is set to fund and execute supporting action in each CARIFORUM country undertaking fourth round mutual evaluations. The activities include:
1 Standards Training Seminar
1 Pre-Assessment Training Seminar
1 Pre- Onsite Training Seminar (CFATF Secretariat)
1 On-site Mutual Evaluation Mission
This component of the Project is intended to support countries as it focuses on (a) building a sound understanding of the FATF requirements; (b) improving Countries preparedness for the MEVAL process; and (c) Facilitating the MEVAL On- site assessment. Each aspect of the Project will be elaborated on in further issues of this newsletter. However, jurisdictions are encouraged to reach out to our project Office for further information at any time.
‘This publication was produced with the financial support of the European Union. Its contents are the sole responsibility of the CFATF and do not necessarily reflect the views of the European Union’.