The Chair of MONEYVAL Ms Elżbieta Franków-Jaśkiewicz took part in the Third Ministerial Conference 'No Money for Terror' in New Delhi, 18-19 November 2022. It included over 500 delegates from across the world, including Ministers, Heads of Multilateral organisations and Financial Action Task Force (FATF) Heads of Delegations. The Prime Minister of India, Mr Shri Narendra Modi addressed the Conference, stressing that the United Nations Security Council, Financial Action Task Force, Financial Intelligence Units, and the Egmont Group, are boosting cooperation in the prevention, detection and prosecution of illegal fund flows. The Prime Minister highlighted that the framework is helping the war against terror in multiple ways over the past two decades.
The Chair of MONEYVAL addressed the Conference with the following remarks:
Excellencies, Ladies and gentlemen, Dear colleagues,
First of all I would like to thank the Government of India for hosting such an important event. It is my great honour to be here and to contribute to this conference.
Let me start by saying a few words about MONEYVAL, which is the Committee of Experts of the Council of Europe on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism. It is a permanent monitoring body of the Council of Europe entrusted with the task of assessing compliance with the Recommendations of the Financial Action Task Force (FATF).
MONEYVAL manages a dynamic process of mutual evaluations, peer review and follow-up of its reports, in order to motivate authorities and the private sector to combat money laundering and terrorism financing more effectively.
MONEYVAL has been always paying special attention to Combating Financing of Terrorism (CFT) in its mutual evaluations. We have been checking whether jurisdictions prioritise CFT matters and whether there is a political commitment to do so.
I can say that the focus on terrorism financing issues in all MONEYVAL member countries has evolved. Previously the focus was mostly on legal and institutional framework without considering the country’s risk and context. Nowadays, jurisdictions need to do more due to their risk profile. They need to have a more thorough understanding and knowledge of terrorism financing matters. For example, now they are required to carry out NRAs and adopt national policies to help jurisdictions better understand if measures in place are enough or targeted steps to enhance these measures are needed.
In recent years, MONEYVAL has launched a horizontal review project. The outcome of this project allowed us to reveal several important areas that significantly contribute and impact national CFT systems, where countries could do more.
One of such key areas that crucially impacts the understanding and awareness of TF risks, trends and patterns by governmental entities, by the private sector, and by many other stakeholders, is the national risk assessment.
We have seen in MONEYVAL what is needed: a comprehensive analysis of domestic, regional and international threats and vulnerabilities, involvement of all competent authorities in the process, extending the scope of assessment to legal persons, non-profit organisations and virtual asset service providers (VASPs), analysis of terrorism-related crimes on potential links to TF.
Jurisdictions need to pay proper attention to TF trends and enhance their understanding and knowledge of that subject. The financing of terrorism can encourage further criminal activity (e.g., organised criminal group, trafficking in human beings and migrant smuggling, drugs and arms trafficking), undermine the rule of law and political stability of a country.
We need to think here more strategically. The World has entered a new era of digital transformation, i.e., blockchain technologies, virtual assets, new payment methods, products and services. All these developments are aimed at making our lives easier. However, terrorists are constantly seeking ways to exploit these new technologies. Methods and techniques used by terrorists to conceal their funding are always evolving. The ease with which they can make use of new technologies, products and services to move proceeds easily and quickly through the international financial system presents an additional set of challenges.
Definitely, we should not be de-risking all these technologies, we need to find a balanced way how to manage and mitigate potential risks associated with these technologies.
I thank you for your attention.