What is MONEYVAL?
FATF leads the global efforts to combat Anti-Money Laundering (AML), Financing of Terrorism (FT) and Countering Proliferation Financing (CFP). FATF evaluates 19 Council of Europe member states, and MONEYVAL evaluates 27 Council of Europe member states. Two FATF members are selected by the FATF President to be members of MONEYVAL for a two-year period. Germany and the United Kingdom have currently been designated.
MONEYVAL is the official name of the Committee of Experts on the evaluation of AML measures and the Financing of Terrorism and is a permanent monitoring body of the Council of Europe.
MONEYVAL’s purpose is to assess member compliance with the principle international standards to counter AML, FT and CPF, as well as making any recommendations on improvements identified to national authorities.
What are MONEYVAL’s objectives?
- Assessment against all relevant international standards in the legal, financial and law enforcement sectors by a process of multi evaluations, including assessment of effectiveness of the implemented measures in practice.
- Formulate recommendations and ways to approve the effectiveness of domestic regimes and members' capacity to cooperate internationally in these areas.
- Conduct thematic, typologies, and research of methods, trends, techniques, and issue reports.
- Conduct other research into related AML, FT and CPF, including horizon reviews of the progress evaluated members are making in meeting the international standards in each evaluation round.
- Raising awareness of major global policy and operational initiatives to counter AML, FT and CPF.
- Consult with the European Committee on Crime Problems (CDPC) and propose recommendations for adoption by the Committee of Ministers to improve the international fight against AML, FT and CPF.
- Work closely with other key international parties, including FATF, the IMF, the World Bank, the United Nations, the European Union, and other FATF style regulatory bodies (FSRB’s) in the global network of AML CFT assessment bodies.
How is the MONEYVAL assessment progressing in the Crown Dependencies?
Surprisingly, not everyone understands that there are three island territories within the British Isles, known as crown dependencies. These are not part of the United Kingdom but are considered self-governing UK possessions.
- The Bailiwick of Guernsey
- The Bailiwick of Jersey
- The Isle of Man
It’s interesting to note that the Crown Dependencies were subject to a MONEYVAL assessment in October 2012, and so have as much rigor applied to their financial regulatory infrastructure and supervision processes as Europe and the UK.
Jersey underwent its last MONEYVAL evaluation at the end of 2023 and Guernsey is due its onsite visit in April 2024. In November 2022, the Isle of Man had its fourth ‘enhanced follow-up report & technical compliance re-rating'. This is evidently a continual evaluation process, with each round evolving in line with MONEYVAL’s objectives.
What are the possible outcomes of a MONEYVAL assessment?
Mutual evaluations are in-depth and very strict, and a jurisdiction is only deemed compliant if it can prove this to the other members by satisfying the FATF recommendations.
If a jurisdiction doesn’t meet the standards and is placed under increased monitoring, it means that they have committed to resolving identified strategic deficiencies within an agreed timescale, often referred to as the ‘grey list’ or, even worse, the ‘blacklist’.
The fallout being the cost of doing business with other jurisdictions increases, and they will typically be classed as ‘high risk’, linking to potential economic shrinkage.
How can Newgate Compliance (UK and Channel Islands) help?
At Newgate Compliance (UK and Channel Islands), we support your front-line and operational staff with training that offers clear guidance on their responsibilities. Our compliance platform, the Gateway, offers a robust second line of defence for efficient compliance monitoring, whilst our health check acts as a mini audit of your compliance structure, providing insights into risk exposure and ensuring ongoing compliance.
For more information on how we can support your ‘Three Lines of Defence’ in your compliance and risk infrastructure and help prepare our Channel Islands based clients in their upcoming MONEYVAL requirements, reach out to the team today.