Organ Trafficking: The Unseen Form of Human Trafficking

In Focus

Country Risk Assessments

Question:

Why does the Financial Action Task Force (FATF) instruct assessors not to make an overall assessment for each country when organizations like Transparency International and other corruption-indexing organizations rank country’s performance?

Response:

Great question. Only FATF knows. My guess is that it may have to do with “single number” rankings often too simplistic for practical risk assessment purpose. It can mask a nuanced understanding if, for example, two countries have the same overall rank, but an important measure for some risk purposes may be lower, or higher, in one country than another. That is valid.

Personally, I do not favor simple rankings (even those I developed for the ACAMS Today  article, Anti-Money Laundering Effectiveness Rankings: Ranking Countries and Outcomes) without great care in their use, particularly whilst the 11 FATF “outcome” measures do not yet fully reflect outcome measures. As I noted in the peer-reviewed Journal of Financial Crime  and Journal of Money Laundering  Control articles, this is no criticism of FATF. In few other realms have such bodies moved toward effectiveness/outcomes. They are not, however, quite yet the “outcome” measures that might help reflect, unlock, and potentially help achieve better outcomes.

Ronald Pol

*The question and answers found in this document are excerpts taken from the Compliance Forum. Visit ACAMS forums to read more posts.

Chapter Happenings

ACAMS’ Chapter Development Program aims to focus the association’s international efforts in anti-money laundering education and training at a regional level. Chapters provide local forums to facilitate discussion, offer education targeting area-specific issues and foster professional networking among ACAMS members.

For more information on ACAMS Chapters please visit the chapters section on www.ACAMS.org or contact our Chapter Relations team at Chapters@acams.org.

ACAMS South India Chapter Training and Networking Event: AML Issues Unique to the Credit Card Industry
July 18, 2018
Gurgaon, Madhapur Hyderabad, Bangalore and Chennai, India

ACAMS Chicago Chapter Double-Session Event on 7-17-18 at Chicago-Kent College of Law
July 17, 2018
Chicago, IL, United States

Money Laundering via Cryptocurrencies: Regulatory, Enforcement and Intel Perspectives
July 18, 2018
Washington, DC, United States

Money Laundering Trends Seminar
July 19, 2018
Troy, MI, United States

ACAMS Virginia Chapter Loan Fraud Event
July 19, 2018
Virginia Beach, VA, United States

Current Cyberthreats: What Cybercriminals Don’t Want You to Know
July 19, 2018
Atlanta, GA, United States

Sixth Annual Learning Event on Emerging Payments and Technologies
July 25, 2018
Menlo Park, CA, United States

Bitcoin, Blockchain and Compliance—What does it all mean?
July 25, 2018
Las Vegas, NV, United States

Article

John J. Byrne’s Blog

Leave a Reply