Failing AML/CFT-concepts exposed in FATF-publication on Cross-Border Payments

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


[*] Announcement, report (pdf).

Over Ellen Timmer

Weblog: ||| Microblog: ||| Motto: goede bedoelingen rechtvaardigen geen slechte regels
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