Implementation of the FATF 40+9 Recommendations. A perspective from developing countries
| Date | 10 May 2011 |
| DOI | https://doi.org/10.1108/13685201111127777 |
| Pages | 110-120 |
| Published date | 10 May 2011 |
| Author | Neil Jensen,Cheong‐Ann Png |
| Subject Matter | Accounting & finance |
Implementation of the FATF
40 19 Recommendations
A perspective from developing countries
Neil Jensen
Monash University, Melbourne, Australia, and
Cheong-Ann Png
Asian Development Bank, Manila, Philippines
Abstract
Purpose – This paper aims to examine the extent to which the Financial Action Task Force (FATF)
40 þ9 Recommendations have been implemented by developing countries from the Asia-Pacific
region and the issues pertaining to these countries.
Design/methodology/approach – The paper uses the compliance ratings from published reports
of assessments/mutual evaluations for these countries between 2004 and 2010 and makes comparisons
with the ratings for FATF countries for that period.
Findings – These developing countries have demonstrated positive developments in addressing
anti-money laundering and combating the financing of terrorism (AML/CFT) requirements and
having their level of compliance evaluated through the rigorous process of assessment/mutual
evaluation. Nonetheless, the general level of compliance is quite limited, not least when compared with
FATF countries. This may be due to complexities of the FATF 40 þ9 Recommendations, challenges
in prioritizing AML/CFT development amidst other national priorities and general limited capacity in
these countries. An appreciation of the challenges faced by these countries is essential in the
formulation and implementation of AML/CFT measures for these countries.
Originality/value – This paper considers implementation of international standards for AML/CFT
from the perspective of developing countries, which is an important contribution given the needs and
peculiarities of these countries.
Keywords Money laundering,Terrorism, Financing, Developingcountries
Paper type General review
Approximately 118 countries around the world have been assessed on their level of
compliance with the international standards on anti-money laundering and combating
the financing of terrorism (AML/CFT) since 2004[1]. This includes 24 developing
member countries (DMCs) of the Asian Development Bank (ADB)[2]. This paper
examines the level of compliance of these DMCs, particularly the areas where the
compliance level is more limited[3]. It goes on to compare the DMCs’ compliance level
with that of member countries of the Financial Action Task Force (FATF), which are
typically developed countries and collectively responsible for developing global policy
and standards for AML/CFT. It then considers factors pertaining to the level of
compliance of these DMCs and areas of improvement.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
The views expressed in this article are those of the authors and do not necessarily reflect the
views and policies of the ADB, or its Board of Governors or the governments they represent.
JMLC
14,2
110
Journal of Money Laundering Control
Vol. 14 No. 2, 2011
pp. 110-120
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685201111127777
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