Financial Crime World

Saint Pierre and Miquelon Takes Steps to Enhance Financial Action Against Illicit Flows

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Saint Pierre and Miquelon is committed to implementing the Financial Action Task Force (FATF) Recommendations to prevent the misuse of its financial system for illicit purposes. The FATF has issued guidelines to help countries tackle illicit financial flows, providing a comprehensive framework of measures to detect and disrupt financial flows that fuel crime and terrorism.

Understanding the FATF Recommendations

The FATF Recommendations consist of 40 measures divided into seven distinct areas:

  • AML/CFT Policies and coordination
  • Money laundering and confiscation
  • Terrorist financing and financing of proliferation
  • Preventive measures
  • Transparency and beneficial ownership of legal persons and arrangements
  • Powers and responsibilities of competent authorities and other institutional measures
  • International cooperation

These recommendations emphasize the need for countries to identify and understand the money laundering and terrorist financing risks they are exposed to. The FATF continuously monitors new and evolving threats to the financial system and regularly updates its Recommendations to ensure countries have up-to-date tools to combat criminals.

Risk-Based Approach

The cornerstone of the FATF Recommendations is a risk-based approach, which requires countries to:

  • Identify and understand the money laundering and terrorist financing risks they are exposed to
  • Adapt their implementation to their particular circumstances, taking into account their diverse legal, administrative, and operational frameworks and different financial systems

Implementing the Recommendations in Saint Pierre and Miquelon

Saint Pierre and Miquelon is committed to implementing the FATF Recommendations effectively, not merely transposing them into a national legal, regulatory or operational framework as a tick-box exercise. The measures need to be adapted to the country’s national context and mitigate the specific risks it faces.

Assessment of Effectiveness

The FATF Methodology identifies 11 key areas that an effective framework to protect the financial system from abuse should achieve:

  • Effective AML/CFT laws and regulations
  • Adequate resources and powers for competent authorities
  • Effective implementation of customer due diligence measures
  • Risk-based approach to supervision and regulation
  • International cooperation and information sharing
  • Effective sanctions and enforcement mechanisms
  • Transparency and beneficial ownership requirements
  • Effective preventive measures against money laundering and terrorist financing
  • Effective confiscation and recovery of proceeds from crime
  • Effective monitoring and evaluation of AML/CFT systems
  • Effective public awareness and education

The methodology is also used to assess the effectiveness of countries’ actions and their compliance with the technical requirements of the FATF Recommendations.

Conclusion

Saint Pierre and Miquelon’s commitment to implementing the FATF Recommendations demonstrates its determination to prevent the misuse of its financial system for illicit purposes and to protect its citizens from the harm caused by money laundering and terrorist financing. The country is working to adapt its implementation to its particular circumstances, taking into account its diverse legal, administrative, and operational frameworks and different financial systems.