Financial Crime World

San Marino Makes Progress in Strengthening Measures to Combat Money Laundering and Terrorist Financing

Overview

San Marino has made significant progress in addressing technical compliance deficiencies identified in its Mutual Evaluation Report (MER), according to the latest report from the Financial Action Task Force (FATF). The country has successfully addressed deficiencies related to Recommendation 35, which concerns the prevention of the misuse of corporate vehicles.

Progress and Achievements

  • San Marino’s rating for Recommendation 35 has been upgraded from “Partially Compliant” to “Largely Compliant”.
  • The country has made progress in addressing technical compliance deficiencies identified in its MER.
  • San Marino has demonstrated its commitment to strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework.

FATF Recommendations

The Financial Action Task Force (FATF) is an intergovernmental organization that sets international standards for combating money laundering, terrorist financing, and the financing of proliferation. The FATF Recommendations provide guidance on how countries should implement measures to prevent criminal abuse of the financial system.

Mutual Evaluations

The FATF conducts peer reviews of each member country’s AML/CFT system every 2-3 years. These evaluations assess a country’s implementation of the FATF Recommendations and provide recommendations for improvement.

Key Areas of Progress

  • Financial Inclusion and NPO Issues: San Marino has made progress in preventing the misuse of financial institutions for terrorist financing purposes.
  • Digitalization and Virtual Assets: The country has implemented measures to address the challenges created by digitalization and virtual assets, including requirements for virtual asset service providers to register with the authorities.
  • Environmental Crime: San Marino has no significant deficiencies in this area, and its framework is considered effective.

Events and Assessments

The FATF publishes regular reports on its evaluations of member countries’ AML/CFT systems. These reports provide an overview of each country’s progress in implementing the FATF Recommendations and identify areas for improvement.

By strengthening its AML/CFT framework, San Marino has demonstrated its commitment to combating money laundering and terrorist financing. The country’s progress is a positive development for the global financial system, and it serves as an example for other countries to follow.