OUTCOMES OF THE CFATF MAY 2019 PLENARY MEETING

Photo: The Honourable Dale Marshall, Q.C., M.P. Attorney General and Minister of Legal Affairs of Barbados address participants at the opening of the CFATF XLIX Plenary and Working Groups meetings in Port-of- Spain, Trinidad and Tobago during the period 27-31 May 2019.

Port-of- Spain, Trinidad and Tobago, May 2019 - CFATF Chairman, the Honourable Dale Marshall, Q.C., M.P. Attorney General and Minister of Legal Affairs of Barbados chaired the CFATF XLIX Plenary and Working Groups meetings in Port-of- Spain, Trinidad and Tobago during the period 27-31 May 2019.

The main issues dealt with by this Plenary were:

1. Mutual Evaluations and Follow-Up Process and ICRG matters

    • Discussion of the mutual evaluation report (MER) of the Republic of Haiti: The CFATF Plenary discussed the MER of the Republic of Haiti which was prepared on the basis of the FATF Methodology for assessment and which set out the level of effectiveness of the country’s AML/CFT system and their level of compliance with the FATF Recommendations. Plenary approved the MER following discussions at both the CFATF Working Group on FATF Issues (WGFI) meeting and at Plenary. The MER is now being prepared for the post-Plenary Quality and Consistency (Q&C) process and will be published once the process is concluded.
    • Discussion of the 3rd Enhanced Follow-up Report for the mutual evaluation of Trinidad and Tobago in which the country achieved technical compliance re-ratings: The CFATF Plenary discussed the progress that Trinidad and Tobago made since the adoption of its MER in 2015. The CFATF Plenary agreed to re-rate Trinidad and Tobago on eighteen (18) FATF Recommendations. After the completion of a Q&C review, the CFATF will publish the follow-up report which summarises the analysis of how deficiencies identified during the mutual evaluation were addressed and the final conclusion on the re-ratings.
    • Updates on the ongoing mutual evaluation status of the Turks and Caicos IslandsBermudaVenezuela and St. Lucia were provided.
    • Adoption of amendments to the CFATF Procedures for the Fourth Round of AML/CFT Mutual Evaluations, which bolsters and provides greater clarity to the existing Follow-Up Process and ensures consistency with the Universal Procedures.

The amendments were as follows:

  1. Clarification of the process for the Ex-Post Review of Major Quality and Consistency Issues consistent with the amendments to the Universal Procedures effected by the FATF at its February 2019 Plenary meeting;
  2. Clarification of the FATF ICRG one-year ‘Observation Period,’ which impacts the reporting of Members under enhanced Follow-Up; and
  3. Inclusion of referral to the FATF ICRG process as an additional measure where countries placed in Enhanced Follow-Up do not achieve satisfactory progress.

2. CFATF Counter Financing of Terrorism (CFT) Operational Plan

  • Antigua and Barbuda and St. Vincent and the Grenadines made presentations of their CFT work in line with the approved CFT Operational Plan adopted at the CFATF XLVII May 2018 Plenary.

3. Updates of the FATF February 2019 Plenary

  • Outcomes of the FATF February 2019 Plenary were presented at the following CFATF Working Group Meetings: the International Cooperation Review Group (CFATF ICRG), the Working Group on FATF Issues (WGFI), which covers the work of the Policy Development Group (PDG), Global Network Coordination Group (GNCG) and Evaluations and Compliance Group (ECG), the CFATF Risk, Trends and Methods Working Group (CRTMG) and the Heads of FIU Forum.

Some of the topics discussed were:

  1.  Actions taken by the CFATF Members on the FATF’s public statements of October 19, 2018 and February 22, 2019.
  2. The Draft Interpretive Note to Recommendation (INR) 15.
  3. The Draft Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers.
  4. Guidance on the Risk-based Approach: RBA Guidance for Legal Professionals, Accountants, and TCSPs.
  5. Digital Identity – Policy Options.
  6. The Draft Best Practices on Beneficial Ownership.
  7. Post-Plenary Quality and Consistency Review of the Cayman Islands MER.
  8. Upcoming Project Reports on Financial Flows from Human Trafficking and Vulnerabilities in the concealment of Beneficial Ownership information.

4. CFATF Governance

  • The Honourable Dale Marshall, QC, MP, Attorney General and Minister of Legal Affairs of Barbados holds the CFATF Chairmanship for the period November 2018 – November 2019, while Lt. Col. Edward Croft, Director of the Organisation of Drug and Money Laundering Control Policy of Antigua and Barbuda holds the position of Deputy Chair of the CFATF. Honourable Basil Williams, QC, MP, Attorney General and Minister of Legal Affairs of Guyana holds the position of Immediate Past Chair, which ensures the tripartite governance of the CFATF.