Financial Action Task Force (FATF)
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. It makes recommendations which, if implemented and followed, combat the misuse of financial systems. Initially these recommendations were aimed at the laundering of drug money, but this has been revised to reflect evolving money laundering trends and to deal with specific issues such as:
- organised crime
They also help authorities go after the money of criminals dealing in illegal drugs, human trafficking and other crimes. The FATF also works to stop funding for weapons of mass destruction.
The 40 recommendations have been endorsed by over 200 countries and jurisdictions. They are universally accepted to set the international standard for anti-money laundering (AML) and countering the financing of terrorism (CFT).
Financial Action Task Force (FATF)
MONEYVAL is the Committee of Experts which evaluates AML and CFT measures within Europe. It does so by first assessing compliance with the international standards (including the FATF Recommendations) and then reviewing the effectiveness of their implementation.
Since 1 January 2011 MONEYVAL has been an independent body, reporting directly to the Council of Europe Committee of Ministers. Other agencies, known as FATF Style Regional Bodies (FSRBs), perform the same role in other areas of the world, but as far as Europe is concerned MONEYVAL is the assessing agency.
MONEYVAL undertakes a number of tasks, but the most relevant to Jersey at this time is the assessment of its members' compliance with all relevant international standards in the legal, financial and law enforcement sectors. This is done through a peer review process of mutual evaluations, which involves questionnaires and a visit to conduct interviews with relevant stakeholders, which is scheduled for September 2023. Following this process the Island's performance will be assessed.
MONEYVAL's representatives need to have particular knowledge and experience of their domestic AML and CFT regimes and should have expertise in the following areas:
- regulation and supervision of financial institutions
- law enforcement and financial intelligence units
- representatives of ministries of justice and/or judicial and prosecutorial
Its reports provide highly detailed recommendations on ways to improve the effectiveness of domestic regimes to combat money laundering and terrorist financing and members capacities to co-operate internationally in these areas. If a jurisdiction has failed to meet the required standards it can be grey listed, or in the most serious cases black listed, although only 2 countries are presently so defined.
Jersey has 4 trained MONEYVAL assessors based in different insular agencies. This provides Jersey with detailed working knowledge of MONEYVAL's process and procedures for mutual evaluations, and provides invaluable insight into how best to prepare for an evaluation.
MONEYVAL in brief (coe.int)
Jersey's engagement with MONEYVAL is a two way process. The four trained assessors working locally have been part of teams that have reviewed the AML/CFT compliance in other jurisdictions. Jersey is assessed by MONEYVAL in turn by a team made up of representatives from other jurisdictions.
The last assessment of Jersey's compliance with the 2003 FATF recommendations was in January 2015. The process is that the assessors visit the jurisdiction and speak with agencies and industry representatives, research the Island's performance against the FATF Recommendations, before preparing a report that is then discussed and adopted at a MONEYVAL plenary session. These plenary sessions involve discussion between all member states, and Jersey has a seat in those gatherings as a Crown dependency.
The last report was adopted at the plenary on 9 December 2015, and published along with a press release from the Council of Europe on 24 May 2016. The assessment team will be visiting the Island in September 2023, with the report being finalised in 2024.
Report on fourth assessment visit: anti-money laundering and combating the financing of terrorism (Jersey) from the Council of Europe website
In response to the release of the report, the following press release and summary document was sent out by the Jersey Financial Services Commission and the Law Officers' Department.
MONEYVAL press release from JFSC website
Jersey MONEYV AL report summary from the JFSC website