International Agencies on Combating Money Laundering and Terrorism Financing
Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG)
The Eurasian group on combating money laundering and financing of terrorism (EAG) is a FATF-style regional body which comprises 9 countries: Belarus, India, Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Turkmenistan, and Uzbekistan. EAG is an associate member of the FATF.
12 more states and 17 international and regional organizations have observer status within the EAG.
EAG’s activities aim at assisting the countries of the region in establishing the appropriate legal and institutional frameworks for combating money laundering and financing of terrorism according to the FATF standards.
As part of this effort, EAG conducts mutual evaluations of the national AML/CFT (anti-money laundering and counter financing of terrorism) systems of its countries based on the FATF methodology, explores the typology of money laundering and terrorism financing, and implements technical assistance programs for the Group member states, including staff trainings.
Egmont Group of Financial Intelligence Units
In 1995, a group of Financial Intelligence Units (FIUs) met at the Egmont-Arenberg Palace in Brussels and decided to establish an informal network of FIUs for the stimulation of international cooperation. Currently it is known as the Egmont Group of Financial Intelligence Units. Its FIUs regularly meet to seek ways of cooperation, in particular in terms of information exchange, training and sharing of expertise.
The objectives of the Egmont Group are to hold meetings for FIUs from around the world in order to enhance cooperation on the anti-money laundering and counter financing of terrorism and facilitate the implementation of national programs in this area. This includes the following:
- Expansion and systematization of international cooperation on mutual information exchange;
- FIUs’ efficiency improvement by offering training and facilitation of staff exchange in order to improve the experience and capabilities of the FIU staff;
- Improvement of quality and safety of communication between the FIUs through the use of technologies such as the Egmont Secure Website;
- Better coordination and assistance between the operating divisions of the member FIUs;
- Improvement of operational autonomy of the FIUs; and
- Promotion of formation of FIUs in jurisdictions with existing or emerging AML/CFT programs.
Egmont Group Structure and Organization
The operational structure of the Egmont Group consists of the heads of the FIUs, Egmont Committee, Working Groups, and Egmont Group Secretariat.
Heads of the FIUs
The HoFIUs comprise the Egmont Group’s governing body; making decisions on any matters that affect the Group’s membership, structure, budget and principles. The HoFIUs reach decisions by consensus.
The Egmont Committee serves as the consultation and coordination mechanism for the HoFIUs and the Working Groups. Its primary functions include assisting the Egmont Group in a range of activities, from internal coordination and administration, to representation in the international arena. It also oversees the work of the Egmont Group Secretariat. The Egmont Committee is comprised of permanent and regional members. The Egmont Committee is currently made up of the Chair of the Egmont Group, two Vice-Chairs, the Chairs of the five working groups, regional representatives from Africa, Asia, Europe, the Americas and Oceania, a representative of the Financial Crime Investigation Network (FinCEN, the U.S.), a representative of the host of the Egmont Secure Website, and the Executive Secretary of the Egmont Group.
In order to accomplish its mission of development, cooperation, and sharing of expertise, the Egmont Group created five working groups. The working groups meet periodically and report to the HoFIUs about their activities. The working groups and their functions are as follows:
- Legal Working Group is responsible for considering potential member candidacies and managing all legal aspects and key issues within the Egmont Group, including cooperation between FIUs.
- Working Group for New Members Attraction is responsible for the creation of a global FIU network by identifying FIU candidates for joining and cooperating with the Egmont Group to ensure that they meet the Egmont Group standards.
- Training Working Group is responsible for establishing needs in trainings and opportunities for FIUs and their employees, as well as conducting training workshops for the Egmont Group members and non-member jurisdictions.
- Operational Working Group is responsible for integrating the FIUs in developing typologies and long-term strategic, analytical projects.
- IT Working Group is responsible for providing consultations and technical assistance to new or existing FIUs on development, improvement or modernization of their IT systems, as well as exploring the use of new software that may facilitate analytical work.
Egmont Group Secretariat
The Egmont Group Secretariat (EGS) was established in July 2007 and is based in Toronto, Canada. The Secretariat provides administrative and other support to the general activities of HoFIUs, the Egmont Committee, and Working Groups. The EGS is headed by the Executive Secretary whose appointment is endorsed by the HoFIUs, and reports directly to them through the Egmont Committee.
Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)
The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) was established in 1997 and its functioning was regulated by the general provisions of Resolution Res(2005)47 on committees and subordinate bodies, their terms of reference and working methods.
At their meeting on 13 October 2010, the Committee of Ministers adopted the Resolution CM/Res(2010)12 on the Statute of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL). The statute elevates MONEYVAL as from 1 January 2011 to an independent monitoring mechanism within the Council of Europe answerable directly to the Committee of Ministers.
MONEYVAL Committee Objectives
The objectives of the MONEYVAL Committee are to ensure that its member countries have effective AML/CFT systems and comply with the relevant international standards.
Such standards are those set forth in the FATF Recommendations, the Special Recommendations on Terrorism Financing, including in the UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988), the UN Convention against Transnational Organized Crime, the UN Convention for the Suppression of the Financing of Terrorism (1999), Directive 2005/60/EC of the European Parliament and of the Council on the prevention of the use of the financial system for the purpose of money laundering and terrorism financing and other implementing measures (26 October 2005), and the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime (1990), entered into within the framework of the Council of Europe.
The MONEYVAL Committee evaluates the compliance of its member countries with all international standards in the legal, financial and law enforcement sectors by providing expert review in the course of mutual evaluations.
The Committee’s reports contain very detailed recommendations on how to improve the efficiency of the national AML/CFT regimes and the country’s ability to engage in international cooperation in this area. The MONEYVAL Committee also conducts typology research on methods, schemes and trends in money laundering and terrorism financing.
MONEYVAL Committee Structure
The Committee elects a chairman and a vice-chairman for a period of two years, as well as three other persons who comprise the Bureau. The Bureau makes preparations for the Committee’s work. The Committee’s activities are supported by the Secretariat provided for by the Council of Europe.
MONEYVAL Committee Members and Observers
The MONEYVAL Committee Statute states that the Committee should consist of representatives who are well-informed of their national AML/CFT regimes.
Currently the MONEYVAL Committee has 30 members who are subject to its evaluation procedure. In addition, the FATF appoints two delegations of two FATF member countries with one representative from each delegation with the renewable term of office for two years.
In addition, the below authorities, countries and organizations, which are authorized to nominate a representative to the Committee, have the MONEYVAL Committee observer status:
- Parliamentary Assembly of the Council of Europe, Council of Europe Development Bank, European Committee on Crime Problems, Conference of the Parties to the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and Financing of Terrorism (CETS 198);
- European Commission, and General Secretariat of the Council of the European Union;
- Countries with the Council of Europe observer status (Canada, Japan, Mexico, USA).
International organizations and institutions:
- Secretariat of the Financial Action Task Force on Money Laundering and Terrorism Financing (FATF);
- International Police;
- Commonwealth Secretariat;
- United Nations Office on Drugs and Crime;
- United Nations Counter-Terrorism Committee;
- World Bank;
- European Bank for Reconstruction and Development;
- Group of International Finance Centre Supervisors (formerly known as the Offshore Group of Banking Supervisors);
- Egmont Group of Financial Intelligence Units;
- Eurasian Group on Combating Money Laundering and Financing of Terrorism;
- Other FATF regional organizations that are or will be FATF associate members on a reciprocal basis (currently only the Asia/Pacific Group on Money Laundering);
- Other FATF members.
Cooperation with Other Bodies
MONEYVAL closely works with the below organizations:
- FATF: MONEYVAL is a FATF observer that has been its associate member since June 2006. MONEYVAL benefits from its new status: for example, many countries can actively participate in the FATF meetings on the Council of Europe / MONEYVAL delegation.
- International Monetary Fund and World Bank: Common methodology enables joint recognition of evaluations thereby avoiding duplication of evaluations in the same countries and overwork of national authorities on these tasks; other institutions, where MONEYVAL has the observer status (e.g. the Eurasian Group, established in 2004).
Financial Action Task Force (FATF)
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorism financing and other related threats to the integrity of the international financial system. The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
The FATF has developed a series of Recommendations that are recognized as the international standard for combating money laundering and financing of terrorism and proliferation of weapons of mass destruction. They form the basis for a coordinated response to the threats to the financial system integrity and help to ensure a level playing field. First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003, and most recently in 2012 to ensure that they remain up to date and relevant, and they are intended to be of universal application.
The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorism financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.
The FATF’s decision making body, the FATF Plenary, meets three times per year.