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FATF’s Effectiveness Score Will Prompt Banks to Rethink Jurisdictional Risk
By Colby Adams
printA new grading system by an intergovernmental group on how effectively jurisdictions fight money laundering and terrorist financing is likely to compel global financial institutions to rethink their geographic risk-rankings. The Paris-based Financial Action Task Force (FATF) outlined in February how it would distinguish the technical compliance of jurisdictions with its 40 standards as well as the effectiveness of governmental efforts to fight the two crimes. Where FATF previously assigned a single score, based on technical compliance, the group will now also give an "effectiveness" score. The change, which is expected to pressure countries that have previously complied with FATF...
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