FATF Mutual Evaluation - Changes to 5th Round with Elisabeth Lees of Claritas Legal - 8 March 2023

As Cayman has been on the FATF "grey list" for over a year, my curiosity has been piqued to learn more about the FATF evaluation process and what will happen next. We were privileged to have Elisabeth Lees of Claritas join us to share her expertise with us and to discuss the FATF Mutual Evaluations changes in methodology. You can watch the 45-minute broadcast using the link below.
Elisabeth explained the National Risk Assessment process, the observation period, progress report timelines, and how the assessors and plenary meet and decide which countries get put on the grey list. The Fifth Round commences in 2024, and these next few years will be difficult for countries as the assessment process will require information, data, and statistics over the past four years.
The next round's methodology criteria will assess technical compliance with the 40+ Recommendations. But the focus will be on effectiveness and the 11 "Immediate Outcomes" that measure effectiveness.
In addition to being able to measure and report Immediate Outcomes to pass the effectiveness criteria, countries need to be ready to meet several revisions to Recommendations R.1, R.24, and R.25 and be aware that R.4 and R.38 have the potential to be revised.
So what's all this mean for the average compliance officer and AML-regulated business? Well, expect some significant changes in the next few years. Getting off a grey list may be a relief but staying off will be an ongoing challenge for every country. I encourage everyone to watch the entire broadcast and start planning how your organization will meet the next wave of changes.
I hope you will join us for future AML Grey Matters broadcasts. If you are not already a subscriber, go to silocompliance.com.

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