Key Principles for Mutual Evaluations and Assessments

The mutual evaluation and assessment processes are fundamental to the work of the FATF and all other AML/CFT assessment bodies. In June 2010, the FATF Plenary approved a set of Key Principles for Mutual Evaluations and Assessments. These Key Principles have been prepared by the FATF in collaboration with the FSRBs, the IMF and World Bank. They set out the fundamental objectives, principles and essential underpinnings for the assessment processes, and their observance will enhance the quality and consistency of the mutual evaluation and detailed assessment reports and of the applicable procedures.

The Key Principles are:

1.

The FATF is the international standard setter for anti money laundering and combating the financing of terrorism through the FATF 40 + 9 Recommendations (the FATF Standards) and works towards the full and effective implementation of those Standards. In that capacity the FATF safeguards the general integrity, and the quality and consistency, of the evaluation and assessment processes (including through follow-up processes) as well as ensures the correct interpretation of the FATF Standards. The FATF works with other assessment bodies to ensure that the mutual evaluation and detailed assessment reports (MER/DAR) and follow up reports are objective reflections of the situation in a jurisdiction under assessment.

2.

Each assessment body finalises its own evaluations and assessments and follow-up processes.

3.

MER/DAR are independent, objective, accurate and of a high quality, and are prepared and finalised in a timely way.

4.

There is a level playing field, with MER/DAR (in particular the findings and ratings) being consistent with the FATF Standards and Methodology, with respect to other reports, and among assessment bodies.

5.

The evaluation procedures are documented, fair, streamlined and efficient: they make effective use of limited resources, provide for equal treatment of assessed jurisdictions, create clear and agreed processes in cases of joint evaluations, include a quality review mechanism, and avoid unnecessary delays or duplication. Procedures for Plenary discussions allow adequate time for a full and proper discussion of the MER, with a process that allows the assessment team, the assessed jurisdiction, and members and observers an opportunity to participate fully.

6.

There is a high level of clarity and transparency regarding the progress that jurisdictions are making to enhance their compliance with the FATF Standards. All MER are published, and with respect to the IMF and World Bank assessments of jurisdictions that are not members of the FATF or FSRBs, the IMF and World Bank strongly encourage the publication of the DAR.

7.

Assessment bodies have effective and transparent follow-up processes that result in jurisdictions achieving satisfactory compliance with the FATF Standards in a timely fashion. Such processes are complemented, as appropriate, by other mechanisms that encourage and facilitate compliance, including through the prioritisation of remedial action.

More on: