CAMS International AML Standards and FATF

Question 1

What is the Financial Action Task Force (FATF) and what is its primary role?

Accepted Answer

An intergovernmental body that sets international standards for combating money laundering, terrorist financing, and proliferation financing

Answer

A U.S. government agency that enforces AML laws domestically

Answer

A private sector organization that certifies AML professionals

Answer

An international law enforcement organization that investigates money laundering cases

Question 2

How many FATF Recommendations form the current international AML/CFT standard?

Accepted Answer

40

Answer

20

Answer

30

Answer

50

Question 3

What is the FATF 'grey list' and what are the consequences of a country being placed on it?

Accepted Answer

A list of jurisdictions under increased monitoring with strategic AML/CFT deficiencies who have committed to addressing them, triggering enhanced due diligence for transactions from those jurisdictions

Answer

A list of countries with excellent AML regimes used as models for others

Answer

A confidential internal FATF assessment of member country compliance

Answer

A list of countries that have refused to join the FATF mutual evaluation process

Question 4

What is a FATF 'mutual evaluation' and what does it assess?

Accepted Answer

A peer review process that assesses how effectively a country implements the FATF Recommendations in both law and practice

Answer

A mutual agreement between countries to share AML intelligence

Answer

A joint investigation by multiple countries into an international money laundering network

Answer

An evaluation of FATF's own effectiveness conducted by member countries

Question 5

The FATF Recommendations require countries to criminalize which two underlying offenses to money laundering?

Accepted Answer

All serious offenses generating proceeds AND terrorist financing

Answer

Tax evasion and fraud

Answer

Corruption and drug trafficking

Answer

Cybercrime and organized crime specifically

Question 6

What is the Egmont Group and how does it relate to FATF?

Accepted Answer

An international network of Financial Intelligence Units (FIUs) that facilitates the secure exchange of financial intelligence between member FIUs

Answer

A subcommittee of FATF that drafts the annual updates to the 40 Recommendations

Answer

A European regional body that implements FATF standards within the EU

Answer

A private sector group of banks that advises FATF on compliance best practices