Caribbean FATF Dialogues with IMF/World Bank on Proposed Methodology

During the second week of January 2003, the Caribbean Financial Action Task Force (CFTAF) met in Barbados to consider the Anti-Money Laundering/Combating the Financing of Terrorism Methodology developed by the FATF and the International Monetary Fund (IMF)/World Bank (WB). The CFAFT’s communiqué expressed support of the goals, but recommended more collaboration with the CFATF, its members, and better inclusion of experts from within the region in the evaluation teams. The CFAFT has established a Working Group to: (1) review the process and out come of the Pilot Project and the details of its successor framework; (2) review the substances of the criteria in the Methodology Document premised on ML/FT risks to the global financial system and compare the alleged global risks to those in developed countries to determine whether a real risk exists of CFATF members undermining the global financial system; (3) review the membership of the IMF/World bank Assessment matters and include experts drawn from the region; and (4) address the approach the Methodology adopts and its application to ensure its fairness and relevance to the circumstances of CFATF members by the many assessments to which they must respond. CFAFT recommended that the Minister of Finance of its members prepare a letter to the President of the WB and the Managing Director of the IMF and the Executive Directors represent CFATF Members expressing the concern of each country about the need for a meaningful consultative process in respect of t he AML/CFT Methodology.