EAG representatives took part in the FATF Plenary meeting

EAG delegation composed of the representatives of EAG member states and the Secretariat of the Group took part in the FATF Plenary meeting in Rome (Italy) From 17 to 22 June 2012.

The main issues on the agenda were:

Presentation of the Ministerial Declaration, the final version of the Mandate of the FATF and discussion of the related documents on procedural issues.

In the framework of progress reports consideration of on the results of the mutual evaluation of national AML/CFT systems the Plenary meeting approved the 5th progress report of India, but, as a number of deficiencies have not been eliminated, India was invited to submit a progress report to the next Plenary meeting.

Progress reports of the Republic of Korea, Argentina, Australia, Iceland, Turkey, Ireland, Japan and the United States were also considered.

In the sphere of AML/CFT measures application the procedures of the 4th round of mutual evaluations, based on updated FATF Recommendations adopted in February, 2012 were discussed. The Plenary approved progress report of the Russian Federation considered in the course of the meeting of the Working group on evaluations and implementation (WGEI) and noted the significant positive changes in the legislation of the country. However, Russia has to submit an interim report in February 2013, and the full report in June 2013 for transition to a two-year monitoring.

In the course of the discussion on typologies research the Plenary considered the following project documents: "Guidelines on financial investigations", "Laundering of proceeds from corruption", "Illicit tobacco trade".

The Plenary meeting adopted the reports of Spain, Pakistan and Curacao on the issues of legislation regulating tax compliance.

The separate block in the course of the forum was dedicated to the FATF activities aimed at combating corruption.

In addition, the participants were presented with the draft of the annual report of the FATF for 2011 – 2012, documents of the new Norwegian chairmanship, renewed mandates of the Working groups and reports of their co-chairmen on the results the meeting held on the eve of the Plenary.

Special attention was given to the new Global Network Coordination Group of the FATF (GNCG): its mandate, work plan were approved as well as the first report of the co-chairs and the report on the meeting of the FATF President with the leadership of the FATF-style regional bodies.

The participants of the Plenary meeting were presented with a new Vice-President of the FATF, the representative of the Russian Federation – Mr. Nechaev, at the present time – the MONEYVAL Chairman, as well as with the new composition of the Steering group of the FATF, which included the Russian Federation.

Progress of national AML/CFT systems of EAG member states on the results of the meeting of the International Cooperation Review Group of the FATF (ICRG):

Turkmenistan
Taking into account the results of the on-site mission in Ashgabat, the FATF welcomed the progress made by Turkmenistan. ICRG recommended that the FATF Plenary exclude Turkmenistan from so-called «grey» lists of the FATF. The Plenary meeting adopted a positive decision: Turkmenistan was removed from the FATF monitoring.

Tajikistan
The FATF acknowledged the progress achieved by Tajikistan. However, Tajikistan should continue improving AML/CFT national system, as some points of the plan have not been met. In June it has been a year that passed after Tajikistan had adopted the Action Plan, approved by the FATF. Time of execution of all points of the plan will expire at the end of 2012. The decision of the FATF is to preserve the status quo in respect of Tajikistan.

Kyrgyzstan
In October 2011, Kyrgyzstan made a high-level political commitment to work with the FATF and EAG to address its strategic AML/CFT deficiencies. Since February 2012, Kyrgyzstan has taken steps towards improving its AML/CFT regime, including by establishing an AML/CFT Commission. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Kyrgyzstan should continue to work on implementing its action plan to address these deficiencies, including by:

(1) adequately criminalising money laundering and terrorist financing;

(2) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets;

(3) establishing and implementing adequate measures for the confiscation of funds related to money laundering;

(4) establishing effective customer due diligence measures for all financial institutions; and

(5) implementing an adequate and effective AML/CFT supervisory programme for all financial sectors. The FATF encourages Kyrgyzstan to address its deficiencies and continue the process of implementing its action plan, specifically enacting the necessary AML/CFT amendments.