The fight against money laundering and the financing of terrorism and proliferation requires a global response. The work of the Global Network, which consists of the FATF and nine regional bodies as Associate Members (FATF-Style Regional Bodies, FSRBs), as well as observers, is crucial. The creation in 2005 of an Associate Membership category for FSRBs in the FATF was a milestone in the development of the Global Network. The objective remains to ensure that the FATF Recommendations are implemented worldwide with consistency, in order to protect the integrity of the global financial system and to support global security. The Global Network includes 206 jurisdictions each of which has committed at the highest political level to implementing the FATF Recommendations on Anti Money Laundering and Combating the Financing of Terrorism (AML/CFT). The High-Level Principles & Objectives for FATF and FSRBs govern the relationships between FATF and FSRBs, and set out the operational structure of the Global Network, establishing reciprocal rights, obligations and expectations. As FATF Associate members, FSRBs are meant to support and participate in FATF’s work.
FATF and FSRBs share a common goal to prevent and combat money laundering (ML) and the financing of terrorism and proliferation (TF/PF), and to foster effective AML/CFT/CFP systems. FATF and each of the FSRBs have clear mandates and responsibilities to reach these common goals. FATF, with the support of FSRBs, sets the AML/CFT/CFP international Recommendations and acts as the guardian and arbiter of their application. FSRBs further support the actions of the FATF through their members’ application of FATF Recommendations. FATF and FSRBs assess the technical and effective implementation of the FATF Recommendations by their individual members, through mutual evaluation and follow-up processes.
Ahead of the next round of mutual evaluations, FATF and FSRBs have reflected on the current structure of the Global Network and agreed that, since its initial establishment, it has evolved substantially to a more cohesive and inter-related network. To this end, it is agreed that to more effectively leverage the expertise and work of the Global Network, a global, strategic vision would facilitate the achievement of its members’ common policy, research and operational objectives. The vision is described below. Within the framework of the strategic vision, FATF and FSRBs aim to enhance the Global Network’s cohesiveness and inclusiveness, and ensure that they each continue to benefit from the others’ expertise and inputs.
Over the years, the Global Network has achieved major progress towards a partnership between FATF and FSRBs that mutually reinforces each other’s work, in particular, the conduct of mutual evaluations pursuant to a common Methodology 2013 and Universal Procedures ; processes and procedures to ensure quality and consistency of the Global Network’s reports; ongoing technical and high-level dialogue between FATF and FSRBs; and open channels of communication between FATF and FSRBs to input into each other’s workstreams and activities. The strategic vision will build on these achievements and seek to improve further the cooperation between FATF and FSRBs.
The Strategic Vision of the Global Network
In this context, the following strategic vision will support FATF and FSRBs’ collective efforts to achieve the common objectives of preventing and combating money laundering and the financing of terrorism and proliferation, and of fostering effective AML/CFT/CFP regimes:
- The Global Network mobilises the political will of FATF and FSRB members to protect the integrity of the financial system, and enhance its transparency, which contribute towards global security. FATF is the global AML/CFT/CFP standards setter and arbiter of their application; and FSRBs act as regional experts with collective global reach. FATF and FSRB members achieve these objectives through the effective implementation of the FATF Standards and the adoption of accurate and consistent mutual evaluation reports that help improving national AML/CFT/CFP regimes.
- The Global Network operates on the principles of inclusivity and collaboration, to strengthen cohesion and accountability across the Global Network and to promote a consistent interpretation and application of the FATF Recommendations.
- FATF and FSRBs operate effectively, with adequate resources, expertise and institutional structure to conduct their work, particularly mutual evaluations and follow-up processes, within the agreed timeline and timeframe, and with accurate and consistent reports. There is commitment to the FATF Recommendations and relevant processes from all FATF and FSRB members, as well as an appropriate level of engagement in ME work. The Global Network acts as a driver of constant improvement in the effective implementation of the FATF Recommendations through an ongoing peer review process.
- Common Global Network priorities are jointly identified, set and supported with a focus on mitigating identified global ML/TF/PF threats and vulnerabilities, and weaknesses in implementation of the Recommendations as outlined in mutual evaluation reports. FATF and FSRBs determine their strategic priorities and projects based on the global and regional needs.
- FSRBs work to understand regional risks and operational challenges and needs, and proactively contribute those perspectives to the FATF processes. In turn, FATF’s work to understand and set global responses to the risks of ML/TF/PF takes into account the regional perspectives and specificities.
- The Global Network supports efforts to ensure a common and global understanding of the requirements of the FATF Recommendations and ways to implement them, with effective, coordinated and prioritised capacity-building activities. The FATF supports the efforts of the Global Network and contribute to its strengthening to ensure consistency in the global understanding and implementation of the FATF Recommendations.
This strategic vision will be periodically reviewed and updated to adapt to future developments and new circumstances. Once the strategic vision is approved by the FATF Ministerial meeting in April 2022, practical steps needed to implement it will be defined and agreed by the FATF Plenary, particularly in areas where work is needed to further improve FATF/FSRB cooperation and reach the objectives set by the strategic vision.