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How does the Financial Action Task Force (FATF) measure the effectiveness of a country's efforts to combat money laundering and terrorist financing?
Suggested Answer: A
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'The FATF measures the effectiveness of a country's efforts to combat money laundering and terrorist financing through a mutual evaluation process. During a mutual evaluation, the FATF assesses a country's legal and institutional framework, its implementation of measures to combat money laundering and terrorist financing, and the effectiveness of its efforts. The FATF then issues a report with recommendations for improvement' [CAMS Study Guide 6th edition, page 15-16].
38 comments · newest first
LY
Lynna
10 months ago
I thought internal audits were part of it too?
ED
Edwin
10 months ago
Wait, are we sure that's the only method?
LE
Leota
11 months ago
Totally agree, mutual evaluations are key.
VE
Veronika
11 months ago
I had no idea FATF did this!
AL
Alva
11 months ago
It's all about mutual evaluations!
AL
Alonzo
11 months ago
I vaguely recall something about internal audits, but I believe mutual evaluations are the main method used by FATF.
FL
Floyd
11 months ago
I’m a bit confused; I thought the FATF Evaluation Committee played a role in this, but now I’m questioning if that’s the right answer.
KA
Kate
12 months ago
I remember practicing a question about FATF evaluations, and I think mutual evaluation was the answer. It makes sense since they look at compliance.
DE
Delmy
12 months ago
I think the FATF uses mutual evaluations to assess countries, but I'm not entirely sure how often those happen.
SI
Sina
1 year ago
Wait, is this asking about how FATF itself is evaluated? I'm a bit confused - I was thinking it was about how FATF evaluates other countries, not itself. I'll have to re-read the question carefully before answering.
HE
Hester
1 year ago
Okay, I remember learning about FATF's mutual evaluation process in class. That's where FATF sends a team to assess a country's anti-money laundering and counter-terrorist financing measures. I think that's the right answer here.
EL
Elza
1 year ago
Ugh, I'm not too familiar with FATF and its evaluation methods. I'll have to guess on this one - maybe the FATF Evaluation Committee is involved in the assessment process somehow? Not sure, but I'll give it my best shot.
EL
Elsa
1 year ago
Hmm, this seems like a straightforward question about FATF's assessment process. I'm pretty confident the answer is mutual evaluation, since that's the main way FATF reviews countries' compliance with its standards.
MA
Madalyn
1 year ago
I think this question is asking about how FATF evaluates countries' efforts to combat money laundering and terrorist financing. The options mention mutual evaluations, FATF committees, and internal audits, so I'll need to review those concepts to determine the best answer.
DE
Dewitt
1 year ago
Mutual evaluation - the only answer that makes sense. Unless FATF is secretly run by a bunch of comedians, then maybe the 'Series of internal audits' option is the real winner.
GA
Gary
1 year ago
B) FATF Evaluation Committee
WA
Wayne
1 year ago
A) Mutual evaluation
CH
Christene
1 year ago
I believe FATF also uses the Evaluation Committee to assess a country's efforts in combating money laundering and terrorist financing.
AS
Ashlyn
1 year ago
B) FATF Evaluation Committee
SH
Shannan
1 year ago
I think FATF measures effectiveness through mutual evaluation because it involves peer reviews by other countries.
SA
Sarah
1 year ago
A) Mutual evaluation
RU
Rutha
1 year ago
The Basel Committee? What does that have to do with FATF? Clearly, the correct answer is mutual evaluation.
MA
Major
1 year ago
Mutual evaluation is the correct answer. It is how FATF measures a country's efforts.
WE
Wenona
1 year ago
Internal audits and reporting to FATF? That sounds like a lot of bureaucratic hoops to jump through. Mutual evaluation is the way to go.
DE
Dewitt
1 year ago
It definitely simplifies the process compared to series of internal audits and reporting.
TE
Tequila
1 year ago
I agree, it provides a more comprehensive assessment of a country's efforts.
GA
Gail
1 year ago
Mutual evaluation is definitely a more efficient way to measure effectiveness.
BR
Brice
1 year ago
The FATF Evaluation Committee? Really? I think that's just a made-up option to trip us up.
GA
Gayla
1 year ago
I agree, the FATF Evaluation Committee does sound suspicious. It's probably mutual evaluation.
TO
Tomas
1 year ago
D) Series of internal audits followed by reporting to FATF
HO
Horace
1 year ago
C) Basel Committee
DO
Dorthy
1 year ago
B) FATF Evaluation Committee
VA
Val
1 year ago
A) Mutual evaluation
LI
Lino
1 year ago
Mutual evaluation seems like the obvious choice here. FATF is all about assessing countries' anti-money laundering efforts.
AR
Aron
1 year ago
That's not correct. FATF primarily relies on mutual evaluations to assess countries' anti-money laundering and terrorist financing measures.
FR
Franchesca
1 year ago
D) Series of internal audits followed by reporting to FATF
GE
Gertude
1 year ago
Yes, that's correct. Mutual evaluation is the main method used by FATF to measure a country's efforts.
MY
Myra
1 year ago
A) Mutual evaluation