The FATF is an inter-governmental body, set up in 1989, with 36 members (34 member countries, as well as the European Commission and the Gulf Co-operation Council). Moreover, the FATF has involved many other countries through the creation of 8 FATF Style Regional Bodies, such as the Caribbean Financial Action Task Force (CFATF). The FATF has published 40 recommendations to combat money laundering and the financing of terrorism & proliferation. As part of the Kingdom of the Netherlands, Aruba is a member of the FATF. Aruba is also a member of the CFATF.
The CFATF has twenty-nine members (of the Caribbean Basin) and was established as the result of meetings convened in Aruba in May 1990 and Jamaica in November 1992. The main objective of the (C)FATF is to achieve effective implementation of and compliance with the FATF recommendations.
The FATF Recommendations require all countries to have effective systems for preventing and addressing money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The Recommendations include, among others, the preventive measures to be taken by financial institutions and other businesses and professions. The FATF conducts mutual evaluations of each member on an ongoing basis to assess the level of implementation of the Recommendations.
FATF warning lists
After every plenary FATF meeting, the FATF issues warning lists identifying jurisdictions that have strategic deficiencies in their regimes for anti-money laundering and combating the financing of terrorism. There are three FATF warning lists:
- FATF Public Statement (category 1): jurisdictions with serious deficiencies. This list identifies jurisdictions that have serious deficiencies in their AML/CFT system which might pose risks to the international financial system. Regarding several jurisdictions on this list, the FATF calls for its members to take specific countermeasures in order to protect the ongoing and substantial money laundering and terrorist financing risks.
- FATF Public Statement (category 2): jurisdictions that have not made sufficient progress. The FATF calls on its members to consider the risks arising from the deficiencies associated with these jurisdictions.
- Improving Global AML/CFT compliance: on-going process. This document contains a list of jurisdictions that have serious deficiencies in their AML/CFT regimes but have committed themselves to addressing them.
These lists are published on the FATF website and the CBA notifies entities under its supervision by letter about (changes of) these lists. The letters include specific actions that must be taken.
CFATF warning lists
After the CFATF plenary meetings in May and November 2013 the CFATF for the first time published warning lists identifying jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not complied with their Action Plan developed with the CFATF to address the deficiencies. In these warning lists the CFATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.
These lists are published on the (C)FATF website and the CBA notifies entities under its supervision by letter about (changes of) these lists. The letters include specific actions that must be taken.