Though the title of the publication suggests a limited scope, the FATF-publication on Cross-Border Payments [*] shows the general inadequacy of the AML/CFT legislation as adopted by FATF. The only subject that is typical for cross-border payments, is the correspondent banking relationships. The failures include amongst others:
- Unnecessary double work.
- Problems caused by different legal systems in countries.
- Different requirements on identification and verification of customers and beneficial owners.
- Different definitions of ‘beneficial owner’.
- Inconsistent supervisory approaches across jurisdictions.
- Over compliance by financial institutions in fear of sanctions by the authorities.
- High costs.
In the report nothing is to be found on the effectivity of the measures.
FATF has created a bureaucratic monster that is not certain to help fight crime.
Quote from the conclusion