Preventing Money Laundering and Terrorist Financing

A Practical Guide for Bank Supervisors

Pierre-Laurent Chatain, John McDowell, Cedric Mousset, Paul Allan Schott, Emile van der Does de Willebois

• Publisher: World Bank Publications
• Year: 2009
• eBook ISBN: 9780821379134
• Edition: 0
• Topic: Economics
• Subtopic: Monetary Policy
• Index: Economics

The current financial crisis poses many challenges to all countries and is having a significant impact on economies and societies throughout the world. The need for funds might lower financial institutions' vigilance as to the provenance of those funds. Supervisors also might prudently be focusing on coping with the crisis, affecting their supervision of measures for anti-money laundering and combating the financing of terrorism (AML/CFT). It will take increased efforts to ensure that AML/CFT concerns remain a priority for both banks and their supervisors. Effective supervision is central to the success of a country's AML/CFT system. However, fieldwork in both developed and developing countries has shown an overall low compliance in the supervision of banks and other financial institutions. In fact, supervisory compliance with AML/CFT recommendations is generally lower than the average level of compliance with other recommendations of the Financial Action Task Force (FATF). By providing examples of good practices, 'Preventing Money Laundering and Terrorist Financing' will help countries improve AML/CFT supervision in the banking sector. This practical guide supports the implementation of international standards established by the FATF and other bodies by • providing examples of AML/CFT supervisory regimes in both developed and developing countries, • describing the implementation of good practices in AML/CFT supervision and enforcement, and • giving practical advice on how a particular jurisdiction might incorporate AML/CFT into its supervisory regime. Designed specifically for bank supervisors, this guide will also be of interest to readers working in the areas of finance, corruption prevention, law, accounting, and corporate governance.

Table of contents

• Contents
• Foreword
• Acknowledgments
• About the Authors
• Acronyms and Abbreviations
• Introduction
• Chapter 1 Designing an Effective AML/CFT Supervisory Framework
• Chapter 2 Risk Management in Combating Money Laundering and Terrorist Financing
• Chapter 3 The Licensing Process and AML/CFT Due Diligence
• Chapter 4 AML/CFT Off-Site Supervision
• Chapter 5 The On-Site Supervisory Process
• Chapter 6 Sanctions and Corrective Measures to Be Taken by Competent Authorities
• Chapter 7 National and International Cooperation
• Annex 1 Designing an Effective AML/CFT Framework That Supports Initiatives to Broaden and Deepen Financial Access by the Poor
• Annex 2 Managing ML/FT Risks of Low-Risk Products: The Example of Branchless Banking
• Annex 3 Risk Management Principles for Low-Risk Products: Some Guidelines
• Annex 4 Preparing and Conducting an On-Site Examination for AML/CFT
• Annex 5 Key Documents to Obtain at the Outset of the Inspection
• Annex 6 List of Areas That Pose Higher Risks
• Annex 7 Example of an AML/CFT Questionnaire Used by the French Banking Commission
• Annex 8 Example of Sanctions Applied by the French Banking Commission
• Annex 9 FATF 40+9 Recommendations
• Index
• Boxes
• Figures