FATF Methodology

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Methodology for assessing technical compliance;
The assessment training commences with FATF holding regular training to train experienced national experts in recommendations and assessment methodology.
After this, the FATF organizes training for representatives of the assessed country so that they know what they will be required to give and show during the process (1).
Next, the assessors are selected by the FATF. The FATF will evaluate the legal background and the language for the assessment.
The assessor has to comply technically by providing information about its laws and regulations. Based on the analysis of laws and regulations, the assessors must provide a draft report with technical compliance ratings for all 40 FATF recommendations.
Next, the effectiveness assessment and on-site visits take place. There is a preliminary scoping that delineates the areas of focus of the visit. During the scoping are considered the vulnerabilities, risks, and types of threats are. Also, the factors related to the country such as the type of economy, the size of the financial sector, the rule of law, the ability of the country to fight money laundering and financing of terrorism, and political stability in the country.
Before the on-site visit, the county must give information on the effectiveness of its system. On receiving this the assessors travel to the country for an on-site visit and examine the effectiveness of the system in each of the eleven areas that are covered by the FATF Methodology (2).
After the on-site visit, the mutual evaluation report is written by the assessors with conclusions on technical compliance and effectiveness. The assessed country is provided with an opportunity to discuss the draft report and engage in a face o face meeting with the assessors. The report is reviewed by independent reviewers, After this, the assessors decide on the final report and the ratings for technical compliance and effectiveness.
The report and ratings of the assessors are presented to the FATF Plenary. The findings and ratings are discussed in the Plenary and consensus among all members, except the assessed country is required to overrule any finding or change the ratings.
The next step is that all countries in the FAFT Global Network review the report for consistency and technical quality before it is published on the website of FAFT.
After the report and the ratings are adopted, the country is required to correct the shortcomings in the report. The country will be subject to reporting improvements, and issuing public warnings against countries that do not correct key deficiencies.

The effectiveness of the AML/CFT systems is moderate:
To an extent, the AML/CFT systems have been able successful in the fight ...