2. Key Organisations in AML/CFT

Today we will take a quick global glance at the organisations that are actively involved in the AML/CFT world, organisations that help the world better understand the risks involved, the scope to cover and also provide guidance on what can and must be done in order to combat money laundering and terrorism financing.

We will look at the following non exhaustive list:

1. Financial Action Task Force (FATF);

2. The Asia/Pacific Group (APG);

3. The Egmont Group;

4. Bank Negara Malaysia (BNM) the Central Bank of Malaysia

Financial Action Task Force (FATF)

This is an inter-governmental body established in 1989. It sets standards and promotes implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. It is a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. It has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction.

The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

(paraphrased from http://www.fatf-gafi.org/about/)

The Asia/Pacific Group on Money Laundering (APG)

This is an autonomous and collaborative international organisation founded in 1997. Some of the key international organisations who participate with, and support, the efforts of the APG in the region include the Financial Action Task Force, International Monetary Fund, World Bank, OECD, United Nations Office on Drugs and Crime, Asian Development Bank and the Egmont Group of Financial Intelligence Units. APG members and observers are committed to the effective implementation and enforcement of internationally accepted standards against money laundering and the financing of terrorism, in particular the Forty Recommendations of the Financial Action Task Force on Money Laundering (FATF).

(paraphrased from http://www.apgml.org/about-us/)

The Egmont Group

This is a group of 150+ Financial Intelligence Units (FIUs) from various countries around the world. It provides a forum for the sharing of expertise and financial intelligence to combat money laundering and terrorist financing (ML/TF). This is helpful as FIUs are uniquely positioned to cooperate and support national/international efforts to counter terrorist financing and are usually the trusted gateway for sharing financial information domestically and internationally in accordance with global AML/CFT standards.

(paraphrased from https://www.egmontgroup.org/en/content/about)

Bank Negara Malaysia (BNM) the Central Bank of Malaysia

BNM is a very relevant organisation to take note in Malaysia, especially if you are a bank / reporting institution in the country. If you come from another jurisdiction, chances are, the central monetary authority in your country will play an equivalent important role. BNM is a statutory body which started operations in 1959, its role is to promote monetary and financial stability in order to provide a conducive environment for the sustainable growth of the Malaysian economy.

(paraphrased from http://www.bnm.gov.my/index.php?ch=en_about&pg=en_intro&lang=en)

Point to Ponder: What similar organisations do you have in your country?