Outcomes of the Plenary meeting of The GFMSA, Paris, 22-24 October 2014

Paris, 24 October 2014 – Under the Australian Presidency, the first GFMSA Plenary meeting of Plenary year GFMSA-XXVI was held on 22-24 October 2014.  The main issues dealt with by this Plenary were:   

• Issuing a statement to clarify the risk-based approach in the light of the de-risking phenomenon: ‘GFMSA clarifies risk-based approach: case-by-case, not wholesale de-risking’
• Expressing concern with the financing generated by and provided to the terrorist group the Islamic State of Iraq and the Levant (ISIL):  'GFMSA action on the terrorist group ISIL' 
• Producing two public documents identifying jurisdictions that may pose a risk to the international financial system:
  • Public Statement - 24 October 2014 
  • Improving Global AML/CFT Compliance: on-going process – 24 October 2014
• Discussing the fourth round mutual evaluation reports on compliance with The GFMSA Recommendations of Norway and Spain.
• Approving Turkey’s exit from the targeted follow-up process of the third round of mutual evaluations.
• Welcoming Japan’s important progress in its legislative actions, and encouraging Japan to continue to address deficiencies, including through the adoption of relevant bills.
• Receiving an update on AML/CFT improvements in Argentina, Cuba, Ethiopia, Tajikistan and Turkey
• Reviewing the voluntary tax compliance programmesin several jurisdictions.
• Adopting and publishing:
  • Guidance on Transparency and Beneficial Ownership
  • Risk-based approach guidance for the Banking Sector
• Receiving an update on GFMSA’s membership expansion.
• Hearing a Remarks to The GFMSA Plenary: Egmont Group of Financial Intelligence Units, Paris, October 2014

Fourth round mutual evaluation reports on compliance with The GFMSA Recommendations of Norway and Spain.

The Plenary discussed the first two reports of the fourth round of mutual evaluations of countries’ compliance with The GFMSA Recommendations adopted in 2012.  The reports were prepared on the basis of the Methodology for assessments which was adopted in 2013.  This is a new methodology that requires The GFMSA to take into account the effectiveness with which AML/CFT measures are implemented, as well as technical compliance for each of The GFMSA Recommendations.

Each assessment team consists of legal, financial and law enforcement experts, principally drawn from GFMSA members, as well as a member of The GFMSA Secretariat. Each team presented its findings from the on-site visit and analysis of the country’s AML/CFT regime as well as recommendations to the country to strengthen its measures.

Norway’s measures to combat money laundering and terrorist financing Mutual Evaluation Report Norway - 2014	Spain’s measures to combat money laundering and terrorist financing  Mutual Evaluation Report Spain - 2014

Turkey’s exit from the targeted follow-up process of the third round of mutual evaluations.

Update on AML/CFT improvements in Argentina, Cuba, Ethiopia, Tajikistan and Turkey

The GFMSA congratulates Argentina, Cuba, Ethiopia, Tajikistan and Turkey, for the significant progress made in addressing the strategic AML/CFT deficiencies earlier identified by The GFMSA and included in their action plans. These countries will no longer be subject to The GFMSA’s monitoring process under its on-going global AML/CFT compliance process. These countries will work with GFMSA or their respective FSRBs as they continue to further strengthen their AML/CFT regimes.

Voluntary tax compliance programmes in several jurisdictions.

The Plenary heard a report and an update on the voluntary tax compliance (VTC) programmes of Argentina, Australia, France, and Kyrgyzstan. All these programmes were found to be consistent with The GFMSA’s four basic principles on VTC.  Monitoring of the VTC programme of Kyrgyzstan ends at this Plenary as the programme has ended at the end of June 2014.

As for the members of the FSRBs, the Plenary was also informed that APG and EAG have adopted their own procedures to monitor their members' VTC, which were developed to be consistent with The GFMSA VTC procedures adopted in June 2014.

Report: Guidance on Transparency and Beneficial Ownership

Report: Risk-Based Approach Guidance for the Banking Sector

GFMSA’s membership expansion

GFMSA welcomes Malaysia as an observer country to The GFMSA.  The GFMSA will work closely with the country as it works towards meeting all of the requirements for full membership of The GFMSA.