METHODOLOGY - FOR ASSESSING TECHNICAL COMPLIANCE WITH THE FATF RECOMMENDATIONS AND THE

Therefore, the Methodology comprises two components: The technical compliance assessment addresses the specific requirements of the FATF Recommendations, principally as they relate to the relevant legal and institutional framework of the country, and the powers and procedures of the competent authorities. [...] Assessors should also consider issues of materiality, including, for example, the relative importance of different parts of the financial sector and different DNFBPs; the size, integration and make-up of the financial sector; the relative importance of different types of financial products or institutions; the amount of business which is domestic or cross-border; the extent to which the economy is. [...] Other contextual factors that might significantly influence the effectiveness of a country’s AML/CFT measures include the maturity and sophistication of the regulatory and supervisory regime in the country; the level of corruption and the impact of measures to combat corruption; or the level of financial exclusion. [...] The technical compliance component of the Methodology refers to the implementation of the specific requirements of the FATF Recommendations, including the framework of laws and enforceable means; and the existence, powers and procedures of competent authorities. [...] The relation between the High-Level Objective, the Intermediate Outcomes, and the Immediate Outcomes, is set out in the diagram below: High-Level Objective: Financial systems and the broader economy are protected from the threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security.