VZCZCXYZ0004
RR RUEHWEB

DE RUCNDT #0963 3022232
ZNR UUUUU ZZH
R 292232Z OCT 09
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC 7452
INFO RUEHGG/UN SECURITY COUNCIL COLLECTIVE

UNCLAS USUN NEW YORK 000963 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PTER EFIN
SUBJECT: FINANCIAL ACTION TASK FORCE PRESIDENT BRIEFS CTC 
 
¶1.  Summary: Paul Vlaanderen, President of the Financial 
Action Task Force (FATF), briefed the Counter-Terrorism 
Committee (CTC) of the Security Council on October 26. 
Vlaanderen recounted the history of the FATF and explained 
the FATF standards, which consist of forty recommendations 
for combating money laundering and nine for tackling 
terrorism financing.  Currently, the FATF consists of 
thirty-five members (South Korea joined on October 14) with 
India as the sole observer.  Most countries are not direct 
members of the FATF, but rather linked through an FATF-Style 
Regional Bodies (FSRB).  End Summary. 
 
¶2.  According to Vlaanderen, the FATF cooperates well with 
the CTC and Counter-Terrorism Committee Executive Directorate 
(CTED).  For example, the FATF has been involved in recent 
CTED missions to Morocco, India, and Azerbaijan.  The FATF 
recently produced an international best practices paper on 
freezing terrorist assets in line with Security Council 
Resolutions 1267 and 1373 and has also issued guidance papers 
on Resolutions 1540, 1737 and 1803.  In April 2008, the FATF 
slightly expanded its mandate to include proliferation 
financing and a FATF project team is currently studying the 
issue with the 1540 committee.  The FATF periodically 
assesses member countries and publishes their reports online. 
 These reports serve to ensure compliance and identify any 
gaps in legislation.  Non-compliance could lead to the 
termination of membership to FATF and also has an effect on 
States' financial sectors.  It has established the 
International Cooperation Review Group to deter 
non-compliance. 
 
¶3.  The recent G-20 meeting in Pittsburgh called on FATF to 
produce a list of high risk jurisdictions by February 2010. 
In 2003, the forty money-laundering standards were revised to 
make them applicable to both money laundering and the 
financing of terrorism.  In 2005, it was determined that a 
review of the standards should include whether they have been 
implemented effectively by all concerned stakeholders.  In 
2009, 129 jurisdictions had been assessed.  Of these 129, 
thirty had successfully implemented the resolutions, with 
only twenty-one with effective systems to freeze 
terrorism-related assets. 
 
¶4.  Vlaanderen explained the FATF typology exercises which 
study cases and methods and serve as a check for the FATF on 
the effectiveness of anti-money laundering and terrorist 
financing policy.  In addition, he explained FATF's 
cooperation with the private sector. 
 
¶5.  USUN LegOFF asked what other measures the FATF takes with 
members who are in non-compliance (other than just expulsion 
from the FATF) and whether there was anything he recommended 
the CTC could do to enhance compliance.  Vlaanderen responded 
that the FATF was not in the business of technical assistance 
as it did not have the resources (less than twenty 
professionals on staff) and that it needed to focus its 
resources on its "core business."  Vlaanderen responded 
similarly when Austria asked about increased coordination 
such as workshops.  Austria also asked if the FATF had any 
insight on how the private sector deals with the lack of 
identifiers with regards to 1267 listing and the freezing of 
assets.  Vlaanderen replied that the issue of identifiers is 
far from the core mandate of the FATF but offered that the 
private sector (banks) is reluctant to take action without 
clear identifiers.  In response to a question from the Libyan 
Arab Jamahiriya, Vlaanderen noted that he was not aware of 
any major problems between FATF and its sister organizations. 
 When asked by Burkina Faso if he saw an increased role for 
regional or sub-regional groups in compliance, Vlaanderen 
said that these groups could help in improving the quality of 
the reviews by FSRBs as the 180 or so reviews differ greatly 
in content. 
Rice