CFATF LII PLENARY OUTCOMES

MAY 2021

CFATF’s LII VIRTUAL PLENARY & WORKING GROUPS MEETING

Photo: The Honourable Carl Wilshire Bethel, Q.C. Attorney General and Minister of Legal Affairs of the Bahamas and Chairman of the CFATF for the period November 2020-November 2021 (first row, sixth photo from left), Executive Director of the CFATF, Ms Dawne Spicer, (third row, fourth photo from left) and other participants at the LII Plenary and Working Groups meetings held in virtually during the period 12^th -27^th May 2021.

Photo: Deputy Chairman of the CFATF for the period November 2020-November 2021, Mrs. Cheryl-Ann Lister, Acting Financial Secretary, Ministry of Finance of Bermuda (fifth row, first photo from left) and other participants at the LII Plenary and Working Groups meetings held in virtually during the period 12^th -27^th May 2021.

Photos: Participants at the CFATF LII Plenary and Working Groups meetings held virtually during the period 12^th -27^th May 2021.

Port-of-Spain, Trinidad and Tobago, (Virtually) May 2021 –CFATF Chairman, the Honourable Carl Wilshire Bethel, Q.C. Attorney General and Minister of Legal Affairs chaired the CFATF LII Plenary and Working Groups meetings held virtually during period 12^th -27^th May 2021. He was ably assisted by the Deputy Chairman of the CFATF for the period November 2020-November 2021, Mrs. Cheryl-Ann Lister, Acting Financial Secretary, Ministry of Finance of Bermuda.

The main issues dealt with by this Plenary were:

Adoption of Amendments to the CFATF Procedures for the Fourth Round of AML/CFT Mutual Evaluations

Amendments to the CFATF Procedures for the Fourth Round of AML/CFT Mutual Evaluations (“The CFATF Procedures) were adopted as necessary to ensure alignment with the Universal Procedures and are intended to strengthen the mutual evaluation process with the aim of better-quality Mutual Evaluation Reports (MERs). Please see WGFI outcomes below for further information.

CFATF International Co-operation Review Group (ICRG) Matters

Outcomes of the FATF ICRG February (virtual) 2021 Working Group Meeting:

a) Status Report on the FATF ICRG process: The Bahamas, Jamaica, Barbados, Cayman Islands, Haiti, Antigua and Barbuda, Turks and Caicos Islands, Saint Lucia.

Fourth Round Mutual Evaluations

a) Follow-up reports (No TC re-ratings requests) (for information only)

(i) Trinidad and Tobago- 4^thEnhanced Follow-up Report

b) Update on the 4^th Round Follow-up Process (Other Jurisdictions)

Actions taken by the CFATF Members on the FATF Public Statements issued in October 2020, December 2020 and February 2021.

Other Working Group Meetings held virtually:

CFATF Heads of FIU Forum (May 12^th, 2021)
CFATF Risk Trends and Methods Group (CRTMG) (May 17^th 2021)
CFATF Working Group on FATF Issues (WGFI) (May 19^th

3. Other Updates Received

Supervision Project funded by the Government of the United Kingdom of Great Britain and Northern Ireland (“the UK”) and the Government of Canada (“Canada”)
11^th European Development Fund Implementation of the Mutual Evaluation Programme Project
Update on the Assessor Mentorship Programme (AMP)
Updates from the Group of Co-operating and Supporting Nations (COSUNs) and Observer Organisations

CFATF Governance

For the period November 2020/November 2021, the Chairmanship of the CFATF is held by The Bahamas represented by the Honourable Carl Wilshire Bethel, Q.C. Attorney General and Minister of Legal Affairs of The Bahamas. The Deputy Chairmanship is held by Bermuda represented by Mrs. Cheryl-Ann Lister, Acting Financial Secretary, Ministry of Finance of Bermuda. The position of Immediate Past Chair is held by Antigua and Barbuda, represented by Lt. Col. Edward Croft, Director of the Office of Drug and Money Laundering Control Policy, Antigua and Barbuda which ensures the tripartite governance of the CFATF.

CFATF Secretariat
July 7^th, 2021

Study on Financial Flows from Human Trafficking in the Caribbean Region

The Caribbean Financial Action Task Force (CFATF) has issued a communique on its recent study on Financial Flows from Human Trafficking in the Caribbean Region. Click here to access.

Cayman Islands’ progress in strengthening measures to tackle money laundering and terrorist financing.

Port of Spain, Trinidad and Tobago, February 19, 2021– As a result of the Cayman Islands’ progress in strengthening its framework to tackle money laundering and terrorist financing since their 2019 mutual evaluation, the Caribbean Financial Action Task Force (CFATF) has re-rated the country on 16 of the 40 Recommendations.

Cayman Islands has been in an enhanced follow-up process, following the adoption of their CFATF Mutual Evaluation Report, which assessed the effectiveness of Cayman Islands’ Anti-Money Laundering and Counter-terrorist financing (AML/CFT) measures and the country’s compliance with the FATF Recommendations. In line with the CFATF Procedures for Mutual Evaluations, Cayman Islands has reported back to the CFATF on the progress it has made to strengthen its AML/CFT framework.

This report analyses Cayman Islands’ progress in addressing the technical compliance deficiencies identified in the Mutual Evaluation Report.

To reflect this progress, the CFATF has re-rated Cayman Islands on the following Recommendations:

1 - Assessing risks and applying a risk-based approach from Partially Compliant to Largely Compliant.

19 - Higher-risk countries from Partially Compliant to Compliant.

22 - DNFBPs: Customer due diligence from Partially Compliant to Compliant.

23 - DNFBPs: Other measures from Partially Compliant to Compliant.

24 - Transparency and beneficial ownership of legal persons from Partially Compliant to Largely Compliant.

25 - Transparency and beneficial ownership of legal arrangements from Partially Compliant to Largely Compliant.

26 - Regulation and supervision of financial institutions from Partially Compliant to Compliant.

28 - Regulation and supervision of DNFBPs from Partially Compliant to Compliant.

29 - Financial intelligence units from Partially Compliant to Largely Compliant.

32 - Cash couriers from Partially Compliant to Compliant.

34 - Guidance and feedback from Partially Compliant to Compliant.

35 – Sanctions from Partially Compliant to Compliant.

The report also looks at whether Cayman Islands’ measures meet the requirements of FATF Recommendations that have changed since their 2019 mutual evaluation, considering any new measures since the mutual evaluation. Accordingly, Recommendations 2, 15, 18 and 21 examined. The CFATF agreed to maintain the rating of Compliant for Recommendation 18, re-rate Recommendation 2 from Partially Compliant to Compliant and re-rate Recommendation 21 from Largely Compliant to Compliant. The rating for Recommendation 15 was downgraded from Largely Compliant to Partially Compliant.

The FUR can be accessed at the following link:

Click here to access the FUR.

Barbados’ progress in strengthening measures to tackle money laundering and terrorist financing

Port of Spain, Trinidad and Tobago, February 10, 2021– As a result of Barbados’ progress in strengthening its framework to tackle money laundering and terrorist financing since their 2018 mutual evaluation, the Caribbean Financial Action Task Force (CFATF) has re-rated the country on 13 of the 40 Recommendations.

Barbados has been in an enhanced follow-up process, following the adoption of their CFATF mutual evaluation report, which assessed the effectiveness of Barbados’ anti-money laundering and counter-terrorist financing (AML/CFT) measures and the country’s compliance with the FATF Recommendations. In line with the CFATF Procedures for mutual evaluations, Barbados has reported back to the CFATF on the progress it has made to strengthen its AML/CFT framework.

This report analyses Barbados’ progress in addressing the technical compliance deficiencies identified in the Mutual Evaluation Report.

To reflect this progress, the CFATF has re-rated Barbados on the following Recommendations:

1 - Assessing risks and applying a risk-based approach from partially compliant to largely compliant

4 - Confiscation and provisional measures from partially compliant to compliant

7 - Targeted financial sanctions related to proliferation from non-compliant to largely compliant

8 - Non-profit organisations from non-compliant to partially compliant

19 - Higher-risk countries from partially compliant to largely compliant

20 - Reporting of suspicious transactions from partially complaint to compliant

29 - Financial intelligence units from partially compliant to largely compliant

32 - Cash couriers from partially compliant to largely compliant

33 - Statistics from partially compliant to largely compliant

34 - Guidance and feedback from partially compliant to largely compliant

38 - Mutual legal assistance: Freezing and confiscation from partially compliant to largely compliant

The CFATF agreed to maintain the rating of largely compliant for Recommendations 2, 5 and 18 and the partially compliant rating for Recommendations 23 and 24. The rating for Recommendation 15 was downgraded from compliant to partially compliant and Recommendation 21 was downgraded from largely compliant to partially compliant.

The report also looks at whether Barbados’ measures meet the requirements of FATF Recommendations that have changed since their 2018 mutual evaluation, taking into account any new measures since the mutual evaluation.

Click here to access the FUR

Fourth Round Mutual Evaluation Report of Saint Lucia

The CFATF Plenary held virtually in December 2020 adopted the Mutual Evaluation Report of Saint Lucia. This evaluation summarises the Anti-Money Laundering (AML) / Counter-Terrorist Financing (CFT) measures in place in Saint Lucia as at the date of the on-site visit September 16^th – 27^th, 2019. The report analyses the level of compliance with the FATF 40 Recommendations, the level of effectiveness of Saint Lucia’s AML/CFT system and provides recommendations on how the system could be strengthened.

Click here for complete report