Omissions in an intergovernmental group's lists of countries with lax anti-money laundering and counter terrorist financing controls may undermine the organization's effectiveness in fighting the crimes, say compliance consultants. On Thursday, the Financial Action Task Force (FATF) named eight countries with the most severe problems and 20 jurisdictions that had yet to follow through on plans to work with the organization. The name-and-shame documents were published at the behest of Group of 20 leaders, who called on the Paris-based organization to revive a blacklist last maintained by FATF in 2006. That only eight countries-including Iran, Ecuador, North Korea, Angola and...
Governments should ramp up their efforts to investigate and prosecute money launderers, including by providing additional powers and resources to local law enforcement, an international watchdog group said.
For many, the question of whether it's easier to anonymously form a shell company in a Group of 20 country or a blacklisted tax haven will seem to have an obvious answer. Many would be wrong, however, according to a recent study.
The U.S. Treasury Department doesn't expect financial institutions to treat the 28 countries blacklisted by an intergovernmental group last month for weak anti-money laundering controls as non-cooperating nations under U.S. Patriot Act rules.