Anti-Money Laundering _ Counteri by pengxiang

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									  Anti-Money Laundering &
Countering Terrorist Financing in
         Bank Projects
            The World Bank
          Finance Forum 2004
          September 23, 2004



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    AML/CFT work in the Bank
• Definitions
Money laundering (ML)is the process by which the
  proceeds derived from a criminal activity are
  disguised in an effort to conceal their illicit origins
  and to legitimize their future use.

Terrorist financing (TF) is the financial support, in
  any form, of terrorism or those who encourage,
  plan or engage in terrorism.
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   AML/CFT work in the Bank
• James D. Wolfensohn : the global
  community should act “where it really
  matters”

• Economically, money laundering and
  financing of terrorism really matter

• Post-9/11 development
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    AML/CFT work in the Bank
• Adverse implications for developing countries
  include:
• 1. Potential increase in crime and corruption
• 2. Potential Damage to reputation of financial
  institutions and market
• 3. Less foreign private investment
• 4. Possible destabilization of financial markets


                                                     4
   AML/CFT work in the Bank

• Because ML and TF can have particularly
  damaging economic and social consequences
  for vulnerable clients countries, the Bank
  board decided in January 2002 to set a special
  AML/CFT working program

• The Bank’s AML/CFT program is a multi-
  pronged approach that complements the
  Bank’s other work.
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         The Board Mandate
• AML/CFT Assessments in FSAPs
• Technical assistance
• Cooperation with existing AML/CFT
  groups
• Cooperation with others TA providers to
  avoid duplication of efforts


                                            6
      TA Program and Policy
• TA provided by the Bank has focused on:
• - drafting of laws and regulations
• - implementation of preventive
      measures in the financial system
• - training bank supervisors
• - setting up FIUs
• - training of evaluators (FSRBs)
                                            7
       TA Program and Policy
• TA is delivered in an effective and efficient
  manner. Examples of TA delivered include:
•o      Individual country TA
•o      Multi-country / Regional training seminars
•o      GDLN (Global Distance Learning Network)
  training programs
•o      Global Dialogue series
   o     E-learning programs (currently underway)
                                                     8
Challenges                      Advantages
• High demand for           • Clear International
  AML/CFT experts or          AML/CFT Standards
  consultants
                            • Existing Evaluation
• Increasing requests for
                              Systems (FATF, FSRB &
  Technical assistance        FSAP)
• Funding
                            • Orgs, networks & donors
                              (UNODC, Egmont Group,
                              ADB, IADB, etc. )
                                                      9
                    Organizations
• FATF – Financial Action Task Force [www.fatf-gafi.org]
       • Recently Revised 40 AML + 8 CFT Recommendations
• FSRBs – FATF-Style Regional Bodies
       •   Asia Pacific Group on AM (APG)
       •   Caribbean Financial Action Task Force (CFATF)
       •   Council of Europe AML/CFT Committee (MONEYVAL)
       •   Eastern & Southern Africa AML/CFT Group (ESAAMLG)
       •   Financial Action Task Force on ML So. America (GAFISUD)
• New FSRBs (not yet officially recognized)
       •   Middle Eastern & North Africa
       •   Eur-Asian FSRB
       •   Sub-saharan Africa (GIABA)
       •   Central Africa (GIABAC)
                                                                 10
• Egmont Group – Assn. of Financial Intelligence Units
                            FSRB Members
FATF:    Argentina, Australia, Belgium, Brazil, Canada, Denmark, EC, Finland, France, Germany,
       Greece, Gulf Coop council, Hong Kong, Iceland, Ireland, Italy, Japan, Luxembourg, Mexico,
       Netherlands, New Zealand, Norway, Portugal, Russia, Singapore, South Africa, Spain, Sweden,
       Switzerland, Turkey, UK, USA.
APG:    Australia, Bangladesh, Brunei, Taipei, Cook Is., Fiji, Hong Kong, India, Indonesia, Japan,
       Macau, Malaysia, Marshall Is., Nepal, New Zealand, Niue, Pakistan, Korea, Palau, Philippines,
       Samoa, Singapore, Sri Lanka, Thailand, USA, Vanuatu.
CFATF:      Anguilla, Antigua/Barbuda, Aruba, Bahamas, Barbados, Belize, Bermuda, Br. Vir. Is.,
       Cayman Is., Costa Rica, Dominica, Dominican Rep., Grenada, Haiti, Jamaica, Montserrat, Neth.
       Antilles, Nicaragua, Panama, St. Kitts/Nevis, St. Lucia, St. Vincent/Grenadines, Surinam,
       Trinidad/Tobago, Turks & Caicos, Venezuela.
MONEYVAL:          Albania, Andorra, Azerbaijan, Bosnia/Herzegovina, Bulgaria, Croatia, Cyprus,
       Czech Rep., Estonia, Georgia, Hungary, Latvia, Liechtenstein, Lithuania, Malta, Moldova,
       Poland, Romania, Russia, San Marino, Serbia/Montenegro, Slovakia, Slovenia, Macedonia,
       Ukraine.
ESAAMLG: Botswana, Kenya, Malawi, Mauritius, Mozambique, Namibia, Seychelles, So. Africa,
       Swaziland, Tanzania, Uganda.
GAFISUD: Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, Uruguay.
MENAFATF: Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi
       Arabia, Syria, Tunisia, United Arab Emirates and Yemen.
                                                                                                       11
Eur-Asia:    Russia, Kazakhstan, Kyrgyz, Tajikistan, Turkmenistan, Uzbekistan, Belarus, China.
 AML/CFT Technical Assistance
• TA loans
• Trust Funds:
   – Loan preparation TFs (adjustment loans)
   – FIRST Initiative Trust Fund
• Donor coordination
• Effective & efficient TA delivery:
   – Multi-country training seminars
   – GDLN training programs (video conference)
   – E-learning programs (under development)

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ECA


      13
Regional & country TA programs
• 2002: Large (24 country) training
  conference, Moscow
• 2003: Sub-regional training seminars
• 2004: Training by GDLN (VC)
  – Central Asian countries
  – Bosnian officials


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