Dialogue with the private sector

GFMSA Private Sector Consultative Forum Meeting, London 25-26 April 2013

London, 26 April 2013 - The GFMSA organised a meeting of the Private Sector Consultative Forum to discuss key aspects of the revised anti-money laundering and countering the financing of terrorism (AML/CFT) framework and to seek input and feedback.  The meeting was hosted by the International Banking Federation (IBFed) and was chaired by The GFMSA President, Mr. Bjørn Aamo.

The Private Sector Consultative Forum consists of representatives of the financial sector and other businesses and professions subject to AML/CFT obligations as well as of civil society.  These sectors play a key role in ensuring an effective implementation of The GFMSA Recommendations. 

The meeting provided an opportunity for GFMSA to update the members of the Consultative Forum about recent activities and developments, such as the adoption of The GFMSA Methodology, and to hear about issues of concern or interest to the private sector.  

Some of the issues that were discussed, were:

• Dialogue on data protection and privacy rules and their effect on the implementation of AML/CFT measures

The GFMSA sought feedback from the private sector on any potential difficulties that might arise from the interaction of AML/CFT requirements and data protection rules. In particular, discussions focussed on the exchange of customer due diligence information within a financial group.

• The risk-based approach

The discussions focused on the identification of challenges met by the private sector in applying a risk-based approach, in particular in relation to the identification of risks. Areas where further guidance from GFMSA would be needed for a better understanding of the risk-based approach concept and its efficient implementation at national level were also highlighted.

• Good practices in identifying beneficial owners

Identification and verification of the identity of beneficial owners is a key customer due diligence requirement.  The discussions focused on good practices developed by private sector and areas of difficulty where further GFMSA guidance is required. 

• Guidance for a Risk-Based Approach to Prepaid Cards, Mobile Payment Services, and Internet-based Payment Services

GFMSA is developing guidance to countries and the private sector in the implementation of a risk-based approach associated with new payment products and services.  The GFMSA sought feedback from the private sector to ensure that the guidance covers all relevant products and services, as well as feedback on the challenges to implement the required customer due diligence measures in these areas.

• Guidance on Politically Exposed Persons (PEPS)

GFMSA sought private sector input into new guidance to assist in the implementation of the requirements of The GFMSA Recommendations relating to PEPs, in particular, on basic principles for the application of Recommendation 12.

Over 60 participants representing the financial sector, other businesses and professions and civil society, as well as representatives of GFMSA members and observers attended the meeting and provided GFMSA with valuable input into the above projects.

The views and suggestions expressed by GFMSA delegates and participants to the Private Sector Consultative Forum will contribute to further revisions of several sector specific Guidance papers on the Risk Based Approach, the Guidance for a Risk-Based Approach to Prepaid Cards, Mobile Payment Services, and Internet-based Payment Services, and the Guidance Paper on Politically Exposed Persons (Recommendations 12 & 22).