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, advocaat ondernemingsrecht @Pellicaan

Verbonden aan Pellicaan Advocaten, http://www.pellicaan.nl/, kantoor Rotterdam, telefoon 088-6272287, fax 088-6272280, e-mail ellen.timmer@pellicaan.nl ||| Weblogs: algemeen: https://ellentimmer.com/ || modernisering ondernemingsrecht: http://flexbv.wordpress.com/ ||| Motto: goede bedoelingen rechtvaardigen geen slechte regels
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