FAQs

CFATF is the acronym for the Caribbean Financial Action Task Force.

We are an organisation comprising twenty-five (25) Member States from the Caribbean Basin, South, Central and North America which have agreed to implement common countermeasures to address the problem of money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction.

CFATF’s mission is to develop and implement effective anti-money laundering, counter-terrorist financing, and counter-proliferation of weapons of mass destruction financing systems and to contribute to the setting of global standards.

Our vision is to be an efficient and responsive organisation that plays a leading role, within the region and the global community, in the prevention and suppression of money laundering, terrorism financing and financing the proliferation of weapons of mass destruction through the effective implementation of the international standards.

Antigua & Barbuda, Anguilla, Aruba, The Bahamas, Barbados, Belize, Bermuda, The British Virgin Islands, Cayman Islands, Curaçao, Dominica, Grenada, Guyana, Republic of Haiti, Jamaica, Montserrat, St. Kitts & Nevis, St. Lucia, Sint  Maarten, St. Vincent & the Grenadines, Suriname, Turks & Caicos Islands, Trinidad & Tobago, United States of America, and Venezuela.

The CFATF is one of ten (10) bodies in the FATF Global Network on money laundering (ML), financing of terrorism (FT), and proliferation financing (PF) around the world. Each body covers different geographic regions. These include the Financial Action Task Force (FATF), the Asia/Pacific Group  on Money Laundering (APG), the Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL), the Eurasian Group (EAG), the Eastern and South African Anti-Money Laundering Group (ESAAMLG), the Financial Action Task Force of Latin America (GAFILAT), the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), the Middle East and North Africa Financial Action Task Force (MENAFATF), and the Action Group Against Money Laundering in Central Africa (GABAC).

The overall FATF Global Network covers more than 200 jurisdictions and 20 observer international organisations.

The CFATF’s main objective is to ensure that its Members achieve compliance with and effective implementation of the FATF Recommendations and, in so doing, address Money Laundering, the Financing of Terrorism and the Financing of Proliferation of Weapons of Mass Destruction.

Mutual Evaluation Reports: Mutual Evaluations assess how effectively Member jurisdictions implement the FATF Recommendations. These evaluations examine both a country’s technical compliance with the FATF standards and the effectiveness of its anti-money laundering and counter-terrorist financing framework.

Follow Up Reports: Follow Up Reports monitors the progress made by jurisdictions in addressing deficiencies identified during their Mutual Evaluation. They allow the CFATF to track improvements in the implementation of the FATF Recommendations over time.

Plenary Meetings: CFATF Members meet regularly in Plenary to discuss matters of common interest, review Mutual Evaluation and Follow Up Reports, and make decisions on issues relating to AML/CFT/CPF in the region.

Training and Technical Assistance: The CFATF Secretariat supports Members by facilitating training related to the FATF standards and the mutual evaluation process. The Secretariat also acts as a liaison between Member jurisdictions and international partners to help channel technical assistance where needed.

The CFATF continuously works and contributes to the work of its own CFATF working groups and the FATF by sending comments on discussion papers and participating in Plenary and Working Group discussions, as main forms of collaboration to discuss ongoing and new risks.

1. The Council of Ministers (the Council)
2. The Plenary of Senior Officials (the Plenary)
3. The Steering Group
4. The Secretariat

The Council of Ministers

The Council is the supreme authority within the CFATF and consists of one ministerial representative or duly authorised alternate proposed in writing from each Member.

The Council is responsible for approving key policy, financial and institutional decisions of the CFATF, as well as decisions related to the admission of new Members, Co-operating and Supporting Nations and Observers. The Council also elects the CFATF Chair and Deputy Chair, appoints the Executive Director and Deputy Executive Director(s).

The Plenary of Senior Officials (the Plenary)

The Plenary is the primary decision-making body on technical matters within the CFATF and is composed of senior officials from each Member jurisdiction. The Plenary meets at least twice annually to review and adopt Mutual Evaluation Reports and Follow-Up Reports, and to consider issues related to the implementation of the FATF Recommendations in Member jurisdictions. It also reviews progress in the implementation of the CFATF work programme, considers technical assistance and training reports, and examines typology reports on money laundering and terrorist financing trends in the region. The Plenary also entails working groups that undertake specific tasks.

The Steering Group

The Steering Group, which is chaired by the CFATF Chairman, is an advisory committee to the Chair, Plenary and the Council on a variety of policy matters and issues and also to the Secretariat on any matter related to the administration of the Secretariat or policies which for practical reasons cannot be dealt with by all Members or where the responsibility has been delegated by Plenary or the Council, as appropriate.

The Steering Group is comprised of the Chairman, the Deputy Chairman, the outgoing Chairman, plus nine (9) other Members.

The Secretariat

The Secretariat performs technical and administrative functions under the direction of the Executive Director, supported by the Deputy Executive Director(s). Member countries select and appoint the Executive Director and Deputy Executive Director(s) and indicate their terms of office.

Co-operating and Supporting Nations (COSUNs) are countries or territories that are not a Member or CFATF Observer and which have expressed their support for the objectives of the CFATF and have been approved by the Council of Ministers. Co-operating and Supporting Nations are committed to the mutual evaluation process in implementing the FATF Recommendations and make contributions to the work and/or resources of the CFATF as are permitted by their respective national laws and policies. The Governments of Canada, France, Mexico, The Kingdom of the Netherlands, Spain, and The United Kingdom, make up our Group of COSUNs.

Observers are countries, territories and organisations that actively support or have an interest in the objectives of the CFATF. Observers may include regional, multilateral or hemispheric organisations, as well as jurisdictions that have applied to become Members or Co-operating and Supporting Nations. To be granted Observer status, a country, territory or organisation should demonstrate an interest in the objectives of the CFATF, have a role related to anti-money laundering, counter-terrorist financing and counter-proliferation financing (AML/CFT/PF), and be able to contribute to the work of the organisation, including the Mutual Evaluation Programme and the provision of technical assistance and training. Observer status also reflects cooperation and reciprocity, allowing the CFATF to participate in relevant meetings and share information on AML/CFT/PF issues with these organisations.

The current CFATF Observers are:

•  Asia Pacific Group Secretariat
• Association of Caribbean Commissioners of Police
• Caribbean Customs Law Enforcement Council
• Caribbean Development Bank
• Caribbean Regional Technical Assistance Centre
• CARICOM Implementation Agency for Crime and Security (IMPACS)
• CARICOM Secretariat
• CARIFORUM
• Central American Bank for Economic Integration (CABEI)
• Commonwealth Secretariat
• Eastern Caribbean Central Bank
• Eastern and Southern Africa Anti Money Laundering Group (ESAAMLG)
• EGMONT Group
• European Union
• European Commission
• Federal Republic of Germany
• Financial Action Task Force (FATF)
• Financial Action Task Force of Latin America (GAFILAT)
• Guatemala
• Group of International Finance Centre Supervisors
• Inter-American Development Bank
• International Monetary Fund
• Interpol
• MONEYVAL
• Organisation of American States – Department against Transnational Organized Crime (OAS-DTOC)
• Organization of Eastern Caribbean States Secretariat
• Regional Security System – Asset Recovery Unit
• United Nations Counter-Terrorism Committee Executive Directorate (UN-CTED)
• United Nations Office of Drugs Control and Crime Prevention
• The World Bank Group
• World Customs Organization

The CFATF is an international / inter-governmental organization, a FATF-styled regional body which follows and ensures its Members comply with the FATF Recommendations. It does not issue standards on its own.

For the history of the FATF and the Standards, please visit: http://www.fatf-gafi.org

The FATF Recommendations are a set of standards designed to provide a comprehensive plan against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. Initially issued in 1990, when they targeted money laundering, the Recommendations have evolved to cover emerging threats.

If Members do not comply with FATF Recommendations they can be sanctioned in accordance with the CFATF procedures. Sanctions can include a letter describing the importance of complying; being included in a Public Statement which can severely hinder its international and specially financial relations and ultimately being suspended or terminated as a Member.

The “Methodology for Assessing Technical Compliance with the FATF Recommendations and the Effectiveness of AML/CFT Systems”, the most recent version was approved in February, 2013, provides the basis for undertaking assessments of technical compliance with FATF Recommendations and reviewing the level of effectiveness of a country’s Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) system.

No, the CFATF is not an investigative body and is unable to take actions on these matters.

The CFATF is an inter-governmental task force, comprised by Members, COSUN and Observers which conducts desk-based and other reviews to ensure Members comply with FATF Recommendations.

Representatives to the CFATF and of our Member States, COSUN and Observers are generally members of the public sector. The involvement of this technical experts and policy making authorities is very important in the approval and implementation of laws, regulations and other measures that follow FATF Recommendations.

Members of the Private Sector cannot attend CFATF Meetings generally, but in recognition of the role of the private sector in directly implementing measures pertaining to the FATF Recommendations in their jurisdictions, the CFATF would seasonally offer training to the private sector, normally partnering with local Authorities and other bodies. The CFATF may also specifically organize forums or invite the private sector to review specific matters which require their input.

Once a country has not put in place remedial measures to address shortcomings identified in its anti-money laundering and countering the financing of terrorism (AML/CFT) regime during the mutual evaluation or is taking too long to do so, the country can be subject to a series of escalating actions leading to a Public Statement on the Caribbean Financial Action Task Force’s (CFATF’s) website. The Public Statement will list the shortcomings in the country’s AML/CFT regime and advise member countries of the CFATF to take appropriate measures to safeguard against the shortcomings of the identified country.

This Public Statement is copied by the Financial Action Task Force (FATF) on its website so all its members (i.e. G20 etc.,) are aware of the concerns and can implement any action they deem appropriate. Private financial institutions have access to both sites with the Public Statements and can also take their own measures in dealing with business coming from countries on a Public Statement.

Once a country has put in place the measures necessary to address the identified shortcomings in the Public Statement either by enacting laws or establishing or strengthening competent authorities, the country can be removed from the Public Statement. To do this, the country’s measures are assessed by the CFATF and a report presented at one of its semi-annual meetings either in May or November. Once the report has indicated that the measures implemented by the country are adequate and that the shortcomings have been dealt with satisfactorily, the country will be removed from the Public Statement. A statement to this effect will be posted on the CFATF website and the assessment report will also be available.