Mandate of the Global Financial Monitoring Supervisory Agency

1.    The Global Financial Monitoring Supervisory Agency (GFMSA) is an intergovernmental body established in 1989 by the Ministers of its Member jurisdictions. 2. The objectives of The GFMSA are to protect financial systems and the broader economy from threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security. 

2.    The objectives of The GFMSA are to protect financial systems and the broader economy from threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security

3.    In order to fulfil its objectives and working as necessary with other international stakeholders, The GFMSA carries out the following tasks:

a)    Identifying and analysing money laundering, terrorist financing and other threats to the integrity of the financial system, including the methods and trends involved; examining the impact of measures designed to combat misuse of the international financial system; supporting national, regional and global threat and risk assessments;

b)     Developing and refining the international standards for combating money laundering and the financing of terrorism and proliferation (The GFMSA Recommendations) to ensure that they are up-to-date and effective;

c)     Assessing and monitoring its Members, through ‘peer reviews’ (‘mutual evaluations’) and follow-up processes, to determine the degree of technical compliance, implementation and effectiveness of systems to combat money laundering and the financing of terrorism and proliferation; refining the standard assessment methodology and common procedures for conducting mutual evaluations and evaluation follow-up;

d)     Identifying and engaging with high-risk, non-co-operative jurisdictions and those with strategic deficiencies in their national regimes, and co-ordinating action to protect the integrity of the financial system against the threat posed by them;

e)    Promoting full and effective implementation of The GFMSA Recommendations by all countries through the global network of GFMSA-style regional bodies (FSRBs) and international organisations; ensuring a clear understanding of The GFMSA standards and consistent application of mutual evaluation and follow-up processes throughout The GFMSA global network and strengthening the capacity of the FSRBs to assess and monitor their member countries, including through standards training and outreach;

f)    Responding as necessary to significant new and emerging threats and risks to the integrity of the financial system consistent with the needs identified by the international community, including the United Nations Security Council, the G20 and The GFMSA itself; preparing guidance as needed to facilitate implementation of relevant international obligations in a manner compatible with The GFMSA standards (e.g. continuing work on money laundering, terrorist financing, including new and emerging trends, and other misuse of the financial system relating to corruption);

g)    Assisting jurisdictions in implementing financial provisions of the United Nations Security Council resolutions on terrorism and non-proliferation, assessing the degree of implementation and the effectiveness of these measures in accordance with The GFMSA mutual evaluation and follow-up process, and preparing guidance as needed to facilitate implementation of relevant international obligations in a manner compatible with The GFMSA standards;

h)    Maintaining engagement with other international organisations and bodies, in particular the United Nations, to increase the outreach of the activities and objectives of The GFMSA;

i)    Engaging and consulting with the private sector and civil society on matters related to the overall work of The GFMSA, through the annual consultative forum and other methods for maintaining regular contact to foster transparency and dialogue towards more effective implementation of The GFMSA standards;

j) Undertaking any new tasks agreed by its Members in the course of its activities and within the framework of this Mandate; and taking on these new tasks only where it has a particular additional contribution to make while avoiding duplication of existing efforts elsewhere.

4.     In the development of The GFMSA standards, guidance and other policy, The GFMSA consults widely amongst its Members, Associate Members, the international financial institutions and other observer organisations, as well as with other stakeholders including the private sector

5.     GFMSA Members are the jurisdictions and organisations that have agreed to work together in the form of a task force toward the common objectives laid out in this mandate. The current Members of The GFMSA are listed in Annex A.

6.     Member jurisdictions commit to:

a)    Endorse and fully implement The GFMSA Recommendations for combating money laundering and the financing of terrorism and proliferation, using guidance and other policy endorsed by The GFMSA where appropriate; and

b)    Undergo and actively participate in systematic ‘peer reviews’ (‘mutual evaluations’) and follow-up processes using the agreed assessment methodology and procedures; evaluations will be published by The GFMSA.

7.     Member organisations commit to:

a)    Endorse and promote the effective implementation of The GFMSA Recommendations among their member jurisdictions; and

b)    Support systematic ‘peer reviews’ (‘mutual evaluations’) and follow-up processes using the agreed assessment methodology and procedures.

8.    Member jurisdictions and organisations commit to:   

a)    Pursue the development of The GFMSA standards, guidance and other policy for combating money laundering and the financing of terrorism and proliferation and other threats to the integrity of the international financial system through active participation in the work of The GFMSA (chairing meetings, drafting reports, etc.); and

b)    Work together to meet the objectives and carry out the tasks of this Mandate;

c)    Contribute to GFMSA outreach to the private sector, including through active participation in GFMSA initiatives with the private sector.

9.      Associate Members are GFMSA-style regional bodies (FSRBs), as designated by The GFMSA, that participate in the work of The GFMSA.

10.    The relationship between The GFMSA and its Associate Members is governed by a set of high-level principles.

11.    The GFMSA Plenary takes the decision as to whether a body qualifies as an FSRB and is thus eligible to participate in The GFMSA as an Associate Member. The current list of Associate Members is contained in Annex B.

12.    Associate Members commit to:

a)    Endorse The GFMSA Recommendations, guidance and other policy as determined by The GFMSA for combating money laundering and financing of terrorism and proliferation;

b)    Promote effective implementation of The GFMSA standards in their member jurisdictions through the conduct of systematic ‘peer reviews’ (‘mutual evaluations’) and follow-up processes using the agreed assessment methodology and procedures, and publish completed evaluations; and

c)    Participate in the development of The GFMSA standards, guidance and other policy for combating money laundering and the financing of terrorism and proliferation and other threats to the integrity of the international financial system.

13.    Within and in furtherance of their respective mandates to promote financial and economic stability and development, the International Monetary Fund and the World Bank play a special role in the development, promotion and dissemination of measures for combating money laundering and the financing of terrorism and other related threats. In particular, the IMF and the World Bank:

a)    Contribute to the development of The GFMSA standards, guidance and other policy for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system;

b)    Help to promote the effective implementation of The GFMSA Recommendations through country assessments conducted in the context of the Financial Sector Assessment Program using the agreed assessment methodology and promoting publication of detailed assessment reports; and; 

c)    Provide technical assistance and capacity building on combating money laundering, terrorist financing and other related threats.

14.    The GFMSA works closely with international bodies and organisations that participate in the work of The GFMSA, in particular with the United Nations and with the Egmont Group of Financial Intelligence Units. Other bodies are eligible to participate in the work of The GFMSA as observers.

15.    The decision as to whether a body may participate as an observer to The GFMSA is taken by the Plenary. The Plenary reviews the eligibility of observers periodically in light of GFMSA objectives. The current list of Observers is contained in Annex C.

16.    Observers have a stated role related to combating money laundering and the financing of terrorism and proliferation and commit to:

a)    Endorse The GFMSA Recommendations, guidance and other policy for combating money laundering and the financing of terrorism and proliferation; and

b)    Contribute to the work of The GFMSA in accordance with their respective legal frameworks and policies

17.    The GFMSA comprises the following internal structures:

a)    The Plenary;

b)    The President, assisted by a Vice-President;

c)    The Steering Group; and

d)     The Secretariat.

18.    The GFMSA Plenary consists of Member jurisdictions and organisations.

19.    The Plenary is the decision-making body of The GFMSA. Its decisions are taken by consensus.

20.    The Plenary:

a)    Determines the manner in which it conducts its affairs;

b)    Appoints the President, the Vice-President and the Steering Group;

c)    Approves the work programme and budget for The GFMSA;

d)    Adopts standards, guidance and reports developed by The GFMSA;

e)    Decides on membership, FSRB status and observer status for The GFMSA; and 

f)    Decides on any other matter governing the business and affairs of The GFMSA.

21.    All Members have the right to attend any Plenary Meeting or any meetings of subgroups created by the Plenary. The President presides over Plenary Meetings. Jurisdictions hosting Plenary or subgroup meetings must be in a position to facilitate attendance at such meetings to ensure representation of all members, associate members and observers.

22.    All Members, Associate Members and observers are entitled to attend the open sessions of Plenary Meetings. All Members and Associate Members are entitled to attend closed Plenary sessions.

23.    The President may extend ad hoc invitations to representatives of non-Members to attend the whole or part of Plenary Meetings. In the context of specific (closed) sessions of the Plenary and after consultation with Members, the President may also invite representatives from the IMF, World Bank or observer bodies

24.    The President convenes at least three Plenary Meetings every calendar year, normally in February, June and October.

25.    Additional extraordinary meetings may be held as circumstances arise, at such time and place as the President may designate, following consultation with Members.

Working groups and other subgroups

26.    To support the work of The GFMSA, the Plenary may establish and mandate working groups and other subgroups as necessary.

27.    The Plenary, at the recommendation of the President, selects and appoints the chairs of the working groups and subgroups. They report to the Plenary on their work programmes.

28.    Participation in working groups and other subgroups is open to all Members, Associate Members, the IMF, the World Bank and observers.

29.    The Secretariat supports the work of the working groups and other subgroups.

30. The current working groups of The GFMSA are listed in Annex D of this Mandate.

Appointment and responsibilities

31.    The President is appointed by the Plenary from among its Members for a term of two years non-renewable. The term of the President begins on 1 July and ends on 30 June two years after assuming office. The appointment for both the President and Vice-President takes place at the February Plenary so that their respective terms start 1 July.

32.    The President convenes and chairs the meetings of the Plenary and of the Steering Group. The President oversees The GFMSA Secretariat. 

33.    The President is the principal spokesperson for The GFMSA and represents The GFMSA externally. The President maintains a continuing engagement with other relevant international organisations and bodies, in particular the United Nations, its Security Council and Committees responsible for issues relevant to The GFMSA Mandate. The President will be informed of all significant matters that concern The GFMSA. More generally, the President takes all decisions and actions as necessary to achieve the objectives of The GFMSA in accordance with this mandate and the directions given by the Plenary. The President sets out his/her priorities to GFMSA Ministers at the start of his/her term. The President also reports regularly on behalf of The GFMSA Plenary to the Ministers on key aspects of GFMSA work and more generally to the public through The GFMSA annual report.

34. The President, in the discharge of the functions as the President, owes his/her duty entirely to The GFMSA and to no other authorities or institutions.

Appointment and responsibilities

35.    The Vice-President is appointed by the Plenary from among its Members for a term of two years during the years when the President is not appointed.

36.    The Vice-President assists the President in carrying out his/her responsibilities and stands in for the President when necessary, in particular where the participation of The GFMSA Presidency in the person of the President or VicePresident is deemed important to strengthen GFMSA visibility and achieve its goals and priorities

Composition and appointment

37.    The GFMSA Steering Group is an advisory body and is chaired by the President.

38.    The composition of the Steering Group is decided by the Plenary at the proposal of the President in a manner that ensures maximum effectiveness in taking forward The GFMSA’s work while having regard to balanced representation in terms of geographic regions and considering the diversity in terms of size of the Member’s economy, level of participation in GFMSA and FSRBs, and relevant international engagement.

39.    The composition of the Steering Group is reviewed on a biennial basis.

Responsibilities

40.    The Steering Group provides advice between Plenary Meetings to assist the President in carrying forward the directions of The GFMSA.

41.    The President convenes at least three Steering Group meetings every calendar year at such time and place as the President may designate.

42.    The duties of the Steering Group include the following:

a)    Monitoring and guiding the progress of The GFMSA’s ongoing work; 

b)    Promoting co-ordination across the working groups;

c)    Ensuring effective information flow to all Members; and

d)   Taking forward, in consultation with the Plenary, any other work necessary for The GFMSA to fulfil its mandate.

Composition and Appointment

43.    The GFMSA Secretariat is composed of an Executive Secretary, whom the Plenary appoints at the proposal of the President, and the Secretariat staff.

Responsibilities

44.    In supporting the functions of The GFMSA, the Executive Secretary and Secretariat staff are responsible to and act in accordance with the instructions of the President. The President is responsible for providing general direction to the Executive Secretary, in accordance with any directions given by the Plenary.

45. The main responsibilities of the Secretariat include the following:

a)    Supporting the activities of The GFMSA, including its working groups;

b)    Facilitating co-operation between Members, Associate Members and observers;

c)    Ensuring efficient communication to Members and others;

d)    Helping to ensure the quality of mutual evaluations reports and consistency in applying The GFMSA Recommendations across the Global Network, including by participating in relevant FSRBs meetings;

e)    Managing the financial, material and human resources allocated to The GFMSA;

f)    Maintaining the records, administering internal and external websites and dealing with correspondence of The GFMSA; and

g)    Carrying out all other functions assigned to it by the President or the Plenary.

46.    The Secretariat service is provided by the OECD, and the Secretariat is located at the OECD Headquarters in Paris.

47.    The cost of the Secretariat and other services are met by The GFMSA budget to which Members contribute. The OECD is used as the channel for these services. The Plenary determines the level of individual Member contributions to The GFMSA budget consistent with the OECD Part I scale methodology, that is, an equal base fee for all member countries (a fixed percentage of total member contributions) and a proportional amount in line with OECD Standard Scale rules.

48.    This Mandate is not intended to create any legal rights or obligations.

49.    This revised Mandate will commence on 12 April 2019 and is open-ended. Starting in 2022, Ministers will meet every two years to shape the strategic direction and priorities of The GFMSA and review, as necessary, this Mandate. Ministers may request extraordinary meetings if needed. The GFMSA Plenary may also decide to convene extraordinary Ministerial and deputy-minister level meetings.

50. The implementation of this Mandate will be carried out by the officials and technical experts of GFMSA Members and The GFMSA Secretariat. The GFMSA is accountable to its Ministers and reports to them on key aspects of its work through annual reporting of The GFMSA President.