An effective AML/CFT supervisory framework with the following key objectives:
- Identify and assess ML/TF/PF risks. Analyzing the nature and scale of inherent ML/TF/PF risks and the effectiveness of AML/CFT systems and controls in place.
- Ensure compliance. Assessing the AML/CFT systems and controls of institutions, and incentivize compliance.
- Mitigation of ML/TF/PF risks. Providing guidance on best practices for AML/CFT compliance commensurate with the identified risks.
- National and international cooperation. Facilitate cooperation and coordination by working with other national and international AML/CFT supervisors and law enforcement authorities to share information and coordinate efforts.
- Enforcement. Put in place enforcement measures proportionate to the severity of breaches (administrative sanctions, such as fines, or referring the matter to law enforcement for criminal prosecution).
