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World Bank Report: Critiques FATFs Work on National Risk Assessments

The Compliance Lady | Sep 9, 2022

World Bank vs FATF NRA - World Bank Report:  Critiques FATFs Work on National Risk Assessments𝗪𝗢𝗥𝗟𝗗 𝗕𝗔𝗡𝗞 𝘃. 𝗙𝗔𝗧𝗙: It is always interesting to come across a study that critiques FATF’s work. In a recent report the World Bank takes a closer look at National Risk Assessments (NRAs). For those not familiar with NRAs, the Financial Action Task Force (FATF) requires nations to demonstrate an understanding of the money laundering risks they face in the country by conducting National Risk Assessments.

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  • World Bank researchers examined eight of the most advanced nations’ (Canada, Italy, Japan, the Netherlands, Singapore, Switzerland, the UK, and the US) NRAs in order to test their knowledge of those fundamental concepts and to draw lessons from them for national governments.
  • A deeply flawed methodology is what they found. The eight NRAs show very different conceptualizations, analytic approaches, and products. Each raises serious issues regarding the risk assessment methodology.
    • For example, most relied largely on expert opinion, which they solicited in ways that are inconsistent with the well-developed methodology for making use of expert opinion.
    • They misinterpreted data from suspicious activity reports and failed to provide risk assessments relevant for policy makers.
    • The report concludes with a set of recommendations for policymakers and NRAs regarding improving risk assessments.

Continue to the full article --> here

Download the 45 page PDF report --> here


NCFA Jan 2018 resize - World Bank Report:  Critiques FATFs Work on National Risk AssessmentsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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