Morris-Cotterill: The FATF v. broken jurisdictions.
23 countries are currently on the FATF grey list.
Albania, Barbados, Burkina Faso, Cayman Islands, Democratic Republic of the Congo, Gibraltar, Haiti, Jamaica, Jordan, Mali, Mozambique, Nigeria, Panama, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Turkey, Uganda, United Arab Emirates, Yemen.
What do they have in common?
They are almost all small, troubled economies, in some cases very troubled societies and countries. Some are in the grip of severe unrest and some have been for years.
Most are what we used to call Third World countries. They are countries that survive - or don't - on aid.
Most have a tax structure that the OECD demands. Barely any have any tax sovereignty still intact. Some barely have a government. And others have a government that took power by force and stays in power by force and fear.
Some have almost no external economy other than financial services.
Most have a serious local problem with corruption. Several have serious domestic armed conflict.
Most also have trouble feeding their people.
These are typical of the countries that the Financial Action Task Force has for more than 20 years put on lists to apply pressure to meet an arbitrary list of "Recommendations" that some of its own large members don't meet.
These are "subject to increased monitoring, this means "the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring"
That circular argument is taken from FATF's own material.
There are other countries, countries that the FATF thinks even less of: there's a black-list. That consists of #Myanmar, #DPKR (North Korea) and #Iran. ... "countries are called upon to apply counter-measures to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing risks emanating from the country."
The FATF says its "process to publicly list countries with weak AML/CFT regimes has proved effective. As of February 2023, the FATF has reviewed 125 countries and jurisdictions and publicly identified 98 of them. Of these 98, 72 have since made the necessary reforms to address their AML/CFT weaknesses and have been removed from the process. "
So, let's be clear. Countries have to set aside domestic priorities to meet the FATF's requirements for a legislative process and the establishment of certain policies or else financial institutions around the world are expected to treat the institutions and businesses in those countries with extra caution.
There is scant evidence that meeting the FATF's demands makes a material difference within those countries. The FATF measures success only by whether, on paper, certain requirements are met.
And what of the listed countries? What happens to them?
No one ever asks.
Until now.
The Economic Crime Forum: Online
The FATF's lists from the perspective of listed jurisdictions
30 March 18:00 GMT
GBP20.
Timetable subject to change.
30 March 18:00 GMT
17:45 Platform opens for login
18:00 Welcome and introduction
18:30 Calvin E J Wilson, Immediate Past Executive Director of the Caribbean Financial Action Task Force
The effects of a negative listing on the financial sector and the economy.
19:30 Sponsor's presentation
20:00 Antonia Esser,
The immediate concerns for payments when a country is placed on an FATF or similar list and planning for removal, with particular reference to international remittances and micro-payments.
21:00 Sponsor's presentation
21:30 John Walker: if countries do as the FATF, etc. demand, does it actually work?
22:30 Wrap up and Thanks
22:45 Platform closes.
Speakers' biogs and booking are at https://financialcrimeforum.com/FCF/web/20230530_FATF_Lists
This Forum is in the early morning in #Australia , #NewZealand and the east #Pacific ;
the start of the working day on the #WestCoast of the #USA and #canada , at lunchtime in #NewYork , #Boston and the East Coast of the USA and Canada and the #Caribbean ; and
the evening in the #UK , Ireland, Channel Isles and Europe and parts of #Africa .
Go direct to booking here - GBP20.00 inc UK VAT where applicable - https://financialcrimeforum.com/FCF_FORMS/20230330_fatf_lists
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