“Name and shame” can work for money laundering

OECD Observer

Financial Action Task Force on money laundering (FATF)*

A June decision to name 15 territories as failing to cooperate with international efforts to combat money laundering, and a warning that they faced possible counter-measures if they did not improve, may already be showing results.

Seven of the 15 jurisdictions deemed to have ¨serious systemic problems¨ in their anti-money laundering regime have since enacted legislation aimed at addressing problems identified by the Financial Action Task Force on money laundering (FATF). Five more are either already working on legislation or have pledged to do so.

The FATF welcomed this “significant, rapid progress” but said it would be ¨premature¨ to take anyone off the non-cooperative list immediately.

Legislation will have to come into effect and the FATF will ensure that it is being implemented before removal from the list can be considered. Any decision to remove jurisdictions from the list would have to be made by a plenary session of the FATF.

The seven jurisdictions that have already enacted legislation are: the Bahamas, the Cayman Islands, the Cook Islands, Israel, Liechtenstein, Panama and St. Vincent & the Grenadines.

Dominica, the Marshall Islands, the Philippines, Russia and St. Kitts & Nevis have made a high-level political commitment or have begun processes to change laws and regulations.

The other three jurisdictions named as non-cooperative in the June report were Lebanon, Nauru and Niue.

In reporting on progress to date on October 5, the FATF urged these jurisdictions which had not yet made any response to revise their laws and create an anti-money laundering regime that complies with international standards.

And it reiterated the June warning that if they failed to do so, ¨FATF members would consider the adoption of counter-measures.¨ These were outlined in February by the FATF and included measures such as obligatory reporting of transactions with financial institutions in non-cooperative territories or even banning transactions with such territories.

The FATF is continuing to monitor weaknesses in the global fight against money laundering and will be reviewing other jurisdictions in the coming year.

* The 31-member FATF is an independent international body whose secretariat is housed at the OECD.

©OECD Observer No 223, October 2000




Economic data

E-Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Suscribe now

<b>Subscribe now!</b>

To receive your exclusive paper editions delivered to you directly


Online edition
Previous editions

Don't miss

  • How do the largest community of British expats living in Spain feel about Brexit? Britons living in Orihuela Costa, Alicante give their views.
  • Brexit is taking up Europe's energy and focus, according to OECD Secretary-General Angel Gurría. Watch video.
  • OECD Chief Economist Catherine Mann and former Bank of England Governor Mervyn King discuss the economic merits of a US border adjustment tax and the outlook for US economic growth.
  • Africa's cities at the forefront of progress: Africa is urbanising at a historically rapid pace coupled with an unprecedented demographic boom. By 2050, about 56% of Africans are expected to live in cities. This poses major policy challenges, but make no mistake: Africa’s cities and towns are engines of progress that, if harnessed correctly, can fuel the entire continent’s sustainable development.
  • OECD Observer i-Sheet Series: OECD Observer i-Sheets are smart contents pages on major issues and events. Use them to find current or recent articles, video, books and working papers. To browse on paper and read on line, or simply download.
  • How sustainable is the ocean as a source of economic development? The Ocean Economy in 2030 examines the risks and uncertainties surrounding the future development of ocean industries, the innovations required in science and technology to support their progress, their potential contribution to green growth and some of the implications for ocean management.
  • The OECD Gender Initiative examines existing barriers to gender equality in education, employment, and entrepreneurship. The gender portal monitors the progress made by governments to promote gender equality in both OECD and non-OECD countries and provides good practices based on analytical tools and reliable data.
  • They are green and local --It’s a new generation of entrepreneurs in Kenya with big dreams of sustainable energy and the drive to see their innovative technologies throughout Africa. blogs.worldbank.org
  • Interested in a career in Paris at the OECD? The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents, find out more at www.oecd.org/careers .

Most Popular Articles

OECD Insights Blog

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2017