Financial Action Task Force of the Organization for Economic Cooperation and Development – FATF(http://www.fatf-gafi.org)BackgroundThe Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. FATF was established by the G-7 Summit that was held in Paris in 1989. Currently FATF has 36 member States, out of which 34 are public or territorial, and 2 are regional organizations. MissionFATF establishes international AML/CFT standards, independently evaluates implementation of the standards by member States and makes legally binding decisions for the States. The FATF monitors members' progress in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, promotes the adoption and implementation of appropriate measures globally, and cooperates with other international agencies participating in fight against money laundering and financing of terrorism. 40+9 RecommendationsIn April 1990, FATF presented a report reflecting 40 Recommendations serving as comprehensive AML/CFT action plan. In 2001, development of counter terrorist financing standard was added to the FATF mission. In October of the same year, 8 Special Recommendations on counter terrorist financing were developed and adopted. One more recommendation was added to the 8 Special Recommendations on counter terrorist financing in October 2004. Presently, the FATF Recommendation are know as 40+9 Recommendations (You can find FATF Recommendations here:http://www.fiu.az/en/international-standards/FATF-40-9-recommendations). Cooperation with AzerbaijanCooperation with FATF as the international organization setting international standards on AML/CFT is very important in terms of formation of an effective AML/CFT system in the Republic of Azerbaijan. FATF’s Public Statement made after its February 2010 Plenary Session recommended improvements to the national AML/CFT legislation of Azerbaijan with regard to certain areas within the cooperation with FATF. In accordance with the mentioned recommendations and for the purpose of adjusting the national AML/CFT legislation to FATF standards, new law was adopted in March 2010. It was decided at the FATF Plenary Session held in June this year to send an an evaluation mission to Azerbaijan for on-site acquaintance with the results of reforms and activities undertaken on the recommendations of the international agencies concerning the development of AML/CFT system. The Mission visited Azerbaijan on 7-8 October 2010. The Mission got first hand information on the progress achieved by the country in development of AML/CFT system, as well as the activitiy of the Financial Monitring Service and held direct discussions on the relevant issues with the competent authorities. As a result of the Mission’s visit, positive report on Azerbaijan was developed and presented to FATF. |
