ACAMS International AML/CFT Standards 2

Question 1

What are the FATF '40 Recommendations' and when were they last significantly updated?

Accepted Answer

The international AML/CFT standards that form the global framework for combating money laundering and terrorist financing, last significantly revised in 2012 and supplemented by targeted revisions through 2023

Answer

Voluntary guidelines for AML compliance, last updated in 2001

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UN Security Council resolutions establishing mandatory AML requirements, adopted in 1989

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EU directives applicable only to European Union member states, last updated in 2018

Question 2

What is the Financial Action Task Force's (FATF) mandate and membership structure?

Accepted Answer

FATF is an intergovernmental policy-making body established in 1989 with 39 members (37 member jurisdictions plus the European Commission and Gulf Co-operation Council) that sets AML/CFT standards and assesses compliance

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FATF is a UN agency with 193 member countries that issues binding resolutions

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FATF is a World Bank initiative that provides technical assistance to developing countries on AML compliance

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FATF is an NGO funded by private banks to develop voluntary AML best practices

Question 3

What is the Egmont Group and how does it support international AML efforts?

Accepted Answer

A global network of Financial Intelligence Units (FIUs) that facilitates the secure exchange of financial intelligence information between member country FIUs to support AML/CFT investigations

Answer

A FATF working group focused on assessing developing country compliance

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An international association of AML compliance officers providing professional certification

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A UN body that coordinates economic sanctions against money laundering havens

Question 4

What does the Basel Committee's AML guidance (Basel III and CDD Paper) require of internationally active banks?

Accepted Answer

Consolidated, enterprise-wide AML/CFT programs that apply the highest applicable standards across all subsidiaries, branches, and affiliates globally, with adequate information sharing between group entities

Answer

Only capital adequacy ratios related to AML fines and penalties

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Annual FATF Mutual Evaluation Report submission to the Basel Committee

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Mandatory AML insurance coverage for international operations

Question 5

What is the 'Wolfsberg Group' and what is its role in international AML standards?

Accepted Answer

A group of 13 global financial institutions that develop voluntary AML/CFT guidance, principles, and best practice papers for the private sector, particularly in correspondent banking, private banking, and trade finance

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An FATF working group responsible for evaluating high-risk jurisdictions

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A UN committee setting mandatory AML requirements for all member states

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An international association of bank regulators that sets examination standards for AML programs

Question 6

What is the role of a Financial Intelligence Unit (FIU) in the national AML framework?

Accepted Answer

FIUs receive, process, analyze, and disseminate financial intelligence (including SAR/STR reports) to competent authorities to support AML/CFT investigations and prosecutions

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FIUs are law enforcement agencies that conduct criminal investigations and make arrests

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FIUs are regulatory bodies that license and supervise financial institutions

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FIUs set national AML policy and issue binding regulations on financial institutions