U4 Helpdesk Answer - The effectiveness of illicit- finance related conditionality in IMF and

U4 Anti-Corruption Helpdesk The effectiveness of illicit-finance related conditionality in IMF and World Bank arrangements 4 IMF staff may choose to design and add to World Bank arrangement conditions pertaining to financial integrity and AML/CFT (IMF 2017b: 1).6 According A 2005 review of its development policy financing to the IMF (2023d: 2) the design of these (DPF) led the World Bank to adopt. [...] For example, a condition was attached to an assessing elements of AML/CFT that are more arrangement with Albania to “develop and discuss 9 This figure (43) represents where mention of “the FATF” is condition is the same or similar to a FATF action item, meaning explicitly made in the wording of the condition as reflected in the that the number of IMF conditions that relate to the FATF MONDA databa. [...] of a condition does not mention “the FATF”, but where the U4 Anti-Corruption Helpdesk The effectiveness of illicit-finance related conditionality in IMF and World Bank arrangements 10 related to implementation, such as the investigation effectiveness in countries with low levels of political and prosecution of offenders and the number of trust and high levels of corruption. [...] However, the IMF stated that “successful are designed by the IFIs can lead to a lack of implementation of governance reforms requires the political will or “ownership” of the conditions by authorities to be fully committed and to cooperate the recipient country, disincentivising their closely with the fund”. [...] They also found was placed in its 2021-23 arrangement with that, while FATF successfully led to the State Bank Panama to “adopt measures to strengthen the of Pakistan to exert pressure on financial effectiveness of the AML/CFT framework to institutions and other regulated entities to file support the country’s efforts to exit the FATF list of more suspicious transaction reports (STRs), the jurisdi.