Ensuring a common standard among all countries – including non-G7 nations – on issues concerning money laundering and the financing of terrorism is the most critical issue facing the financial services industry, a group of accountants were told on Monday.
Delivering the keynote address at the opening ceremony of the Thirty-second Annual Accountants Week at the Wyndham Nassau Resort Monday, Attorney General and Minister of Education Alfred Sears focused on evolving standards of money laundering and the revised forty recommendations of the Financial Action Task Force (FATF).
Filling in for Prime Minister Perry Christie who was unable to deliver the keynote address as he was confined to bed on doctor’s orders, Minister Sears stressed that while all were against money laundering, “We have to ensure that there’s a common standard, because we’re also competitors.”
Mr. Sears, who has just stepped down as chairman of the Caribbean Financial Action Task Force (CFATF), noted that during his tenure, a frequent issue that arose was the methodology by which the international standards to which every country is forced to subscribe are applied.
“No member country of CFATF is able to participate in the plenary of the FATF,” he said. “In fact, no country other than the 29 (Organisation for Economic Cooperation and Development) countries are able to participate directly in the decision-making process.”
He was only invited to attend these meetings because of his position as chairman of the CFATF, Mr. Sears said.
Minister Sears continued that the validity of these 29 countries prescribing rules by which the world is forced to abide or suffer sanctions, including being placed on a list of Non Cooperating Countries and Territories (NCCT) more commonly known as the “blacklist” was also an issue under international law, especially since non member countries placed on the list were not given the right to defend themselves.
To address the situation, the convening of a global forum was called for by the CFATF in its January Ministerial Meeting. The CFATF has also recommended the establishment of a body under the United Nations to deal with money laundering issues with the hope that all member countries under the aegis of the UN would be able to work towards the establishment of an international convention on money laundering.
Minister Sears also gave an update on the revised 40 recommendations of the FATF, which were revised in June 2003.
The revision was deemed necessary as a result of changes in the typology of money laundering, which has extended beyond drug trafficking – the initial focus – and now encompass other serious crimes such as corruption and fraud. The review of the 40 recommendations also encompassed details outlined in the 25 criteria used in the NCCT process.
The revised 40 recommendations were endorsed for use as the benchmark for the third round of mutual evaluation within the Caribbean region. The CFATF is currently in the middle of the second round of mutual evaluations.
Minister Sears continued that CFATF member countries were encouraged to begin implementing the revised 40 recommendations immediately through revisions and amendment of laws.
The 19 recommendations of the CFATF are also currently in the process of being harmonised with the recommendations of the FATF.
By Martella Matthews, The Nassau Guardian
