Full Text: Director-General Of GIABA Mr. Adama Coulibaly...At The FATF/GIABA Training Workshop On The New Fatf Methodology For Assessors 20 - 24 March 2017 Holiday Inn Airport Hotel Accra, Ghana

Honourable Minister for Finance and Economic Planning,

Representative of the FATF Secretariat,
Esteemed Participants
Ladies and Gentlemen:

1. I consider it a singular honour to address the Opening Session of this Workshop. Honourable Minister, I wish to take this opportunity to congratulate you, on behalf of the Management of GIABA and my humble self, on your appointment as the Minister for Finance and Economic Planning of the Republic of Ghana. I also congratulate the people of Ghana for once again demonstrating their commitment to democracy by effecting another change of Government through peaceful means. Ghana continues to play a very central role in the execution of GIABA’s mandate to assist member States to adopt and effectively implement Anti-Money laundering the Combating the Financing of Terrorism (AML/CFT) measures of acceptable international standards, particularly the Financial Action Task Force (FATF) Recommendations against Money Laundering, Financing of Terrorism & Financing the Proliferation of Weapons of Mass Destruction. Indeed, Ghana is the first member State to undergo evaluation in GIABA’s second round of mutual evaluations based on the FATF Revised Standards and the New Methodology. Ghana is also hosting the training of mutual evaluation assessors for the second time. The first time was in July 2009, involving the Anglophone member countries of GIABA. I therefore wish to commend the Ghanaian authorities for their dynamic collaboration with GIABA and unwavering commitment to GIABA in the execution of GIABA’s programmes.

2. I wish to express my appreciation to the Financial Action Task Force (FATF) for its immense contribution towards the organisation of this training workshop. The workshop is hosting participants from West Africa (comprising ECOWAS member States and Sao Tome and Principe), Central Africa (GABAC member States), Southern Africa (Angola), Asia (China), Eurasia (Turkey), Europe (United Kingdom and France). I am highly optimistic that the blend of participants at this workshop will contribute to the consistent high standard of training across the Global Network of standard setters and assessment bodies of AML/CFT and enhance the quality of potential mutual evaluation assessors.

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3. The Authority of Heads of State and Government of ECOWAS established GIABA in December 2000 as a specialised institution, a Financial Action Task Force (FATF) Style Regional Body (FSRB), with the mandate to assist member States to adopt and effectively implement Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) measures in accordance with acceptable international standards, particularly the FATF standards. GIABA determines the compliance of its member States with international standards on AML/CFT measures and the effectiveness of such measures through mutual evaluations, a peer review mechanism adopted by member States for this purpose. The evaluations are based on the FATF Recommendations, the Methodology for Assessing Compliance existing before the scheduled on-site mutual evaluation. Thus, GIABA conducted its first round of on-site mutual evaluation of its member States from 2006 to 2013 jointly and severally with teams of experts from the International Monetary Fund (IMF), the World Bank and GIABA member States. The evaluations were conducted in accordance with the FATF 40 Recommendations against Money Laundering and 9 Special Recommendations against the Financing of terrorism.

4. The 40 Recommendations required countries to, among other things, implement relevant international conventions, criminalise money laundering and enable authorities to confiscate the proceeds of money laundering, implement customer due diligence (e.g., identity verification), record keeping and suspicious transaction reporting requirements for financial institutions and designated non-financial businesses and professions, establish financial intelligence units to receive and disseminate suspicious transaction reports, and cooperate internationally in investigating and prosecuting money laundering. The 9 Special Recommendations focused on ratification and implementation of UN instruments, criminalising the financing of terrorism and associated money laundering, freezing and confiscating terrorist assets, reporting suspicious transactions related to terrorism, international co-operation, alternative remittance, wire transfers, non-profit organisations and cash couriers.

5. The Assessors reviewed the compliance and effectiveness of the legal and institutional frameworks in the countries to prevent financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs) from being used for money laundering and the financing of terrorism purposes. The legal framework comprised the relevant AML/CFT laws, regulations, guidelines), international cooperation and other enforceable means. While the institutional measures included the competent authorities that ensure the effective implantation and enforcement of AML/CFT requirements, as well as those that detect and prevent money laundering and the financing of terrorism. The mutual evaluation reports (MERs) enabled GIABA and its development partners to tailor technical assistance to member States to address priority issues.

6. The second round of mutual evaluations is based on the FATF Revised Standards of 2012 and 2013 New Methodology for Assessing Technical Compliance with the FATF Recommendations and Effectiveness of AML/CFT systems. The Revised Standards takes into account the evolving threats to the international financial system and the lessons learned from the implementation and evaluation of the 40+9 Recommendations through an inclusive process, involving FATF Styled Regional Bodies (including GIABA), International Financial Institutions (IFIs), relevant government officials, international organisations, the private sector and civil society organizations resulting from a series of public consultations and private sector consultative fora. The Revised Standards is a consolidation of the 40 Recommendations and 9 Special Recommendations and, fully integrates the counter-terrorist financing measures with the anti-money laundering measures. It introduces financial sanctions to counter the financing of the proliferation of weapons of mass destruction. The Revised Standards require countries to assess and mitigate ML/TF risks and prescribe stronger safeguards in the financial sector. It clarifies the obligation to implement targeted financial sanctions pursuant to the United Nations Security Council Resolutions and strengthens law enforcement tools and pathways for international co-operation.

7. The New Methodology for Assessing Technical Compliance with the FATF Recommendations and the Effectiveness of AML/CFT systems is informed by the experience of the FATF, FATF-style regional bodies (FSRBs), the International Monetary Fund (IMF) and the World Bank in conducting assessments of compliance with earlier versions of the FATF Recommendations. It sets out how the FATF and other Assessment Bodies, including GIABA, will determine whether a country is sufficiently in compliance with the FATF 40 Recommendations and whether the country’s AML/CFT system is working effectively. According to the FATF, “The new Methodology adds a new dimension to the evaluation of countries compliance with FATF-standards. Although it remains as important as before that all countries implement the Recommendations of the FATF in their legal systems, however, the new Methodology lays the foundation for a systematic assessment of the effectiveness of national systems. Thus, future assessments will determine how well countries achieve the objective of fighting Money Laundering and Financing of Terrorism”. In particular, countries are expected to have a better understanding of their ML and TF risks and establish AML/CFT systems that are commensurate with their identified risks. Assessment of effectiveness is primarily on the basis of eleven Immediate Outcomes, which are nouvelle to the mutual evaluation process.

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8. There are a number of general principles and objectives that govern FATF mutual evaluations, as well as AML/CFT assessments conducted by the FATF-Style Regional Bodies (FSRBs), IMF or World Bank. The procedures are to:

1. Produce objective and accurate reports of a high standard in a timely way;
2. Ensure that there is a level playing field, whereby mutual evaluation reports (mers), including the executive summaries, are consistent, especially with respect to the findings, the recommendations and ratings;
3. Ensure that there is transparency and equality of treatment, in terms of the assessment process, for all countries assessed;
4. Seek to ensure that the evaluation and assessment exercises conducted by all relevant organisations and bodies (fatf, imf, world bank, fsrbs) are equivalent, and of a high standard;
5. Be clear and transparent, encourage the implementation of higher standards, identify and promote good and effective practices, and alert governments and the private sector to areas that need strengthening; and
6. Be sufficiently streamlined and efficient to ensure that there are no unnecessary delays delays or duplication in the process and that resources are used effectively.

9. GIABA has adopted a Calendar for the Second Round of Mutual Evaluations, showing the agreed dates of the on-site visit, the dates for the Plenary discussion of the mutual evaluation reports and dates for follow-up assessments (mid-term assessments) which will be maintained throughout the second round. The schedule was the outcome of consultation between the member States and the Secretariat, and the decision and approval of the Plenary and GIABA Ministerial Committee.

10. Mutual evaluations based on the Revised Standards and the New Methodology require intense efforts and commitment of assessors to ensure that the Key Principles are met. Therefore, it is mandatory for potential mutual evaluation Assessors to attend the relevant training programme organized by any of the Assessment Bodies (the FATF, the FSRBs or the IFIs) before participating in any mutual evaluation. The purpose of training assessors is to furnish relevant public officials with the requisite skills to conduct proper and thorough assessments based on the New FATF Methodology. In this regard, this workshop is designed to ensure that there exists a cadre of experts globally, equipped with requisite skills and competencies to carry out assessments based on the New FATF Methodology. The Training will focus on assisting participants to identify the systems and mechanisms developed by countries with diverse legal, regulatory and financial frameworks in order to implement effective AML/CFT systems. This includes understanding of the country’s risks and context, in the widest sense, and elements which contribute to them, how to access technical compliance and effectiveness, writing the draft mutual evaluation report, among other things.

11. This training should give you the impetus to enhance your knowledge of AML/CFT issues, including ML/TF risks, trends, and methods; provide you with a clear and firm understanding of the FATF Recommendations and the Methodology, enhance your team spirit; enable you to be objective and meticulous your analysis of the facts and figures that may be presented to you by a country, and above all, bring your professional competence to bear on the tasks you are assigned in the mutual evaluation process.

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12. I wish to reiterate that the success of mutual evaluations depends greatly on the commitment of assessors to conduct the exercises in a manner that ensure the achievement of the 7 Key Principles. I therefore urge you to participate actively in the Workshop and endeavor to apply the skills you acquire in your respective countries and regions, as well as across the Global Network on AML/CFT. Have a fruitful workshop. Thank you

GIABA Secretariat
March 2017