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FATF: breach in the independence

Let's analyse the latest report published in the French version of the website (Annual report 2006-2007).

18ème rapport annuel du GAFI - 2006-2007

Depuis sa création, le GAFI dirige au niveau mondial la lutte contre le blanchiment de capitaux, et, depuis une époque plus récente, le financement du terrorisme. Cette dix-huitième année a été marquée par l'accomplissement d'importants progrès réalisés par le GAFI et ses partenaires.

For the English-speaking readers of this blog this means "Since its creation, the FATF has been managing at the worldwide level the fight ainst money laundering and mopre recently the financing of terrorism. This eighteenth year was marked by the achievement of important progress done by the FATF and his partners".

Paragraph 56 page 20 wants commenting. It states "Grâce à un don généreux du Luxembourg, le GAFI améliore ses systèmes informatiques, afin d’offrir à ses délégations un meilleur accès aux documents confidentiels. Ce système sera renforcé au cours de l’année à venir et le GAFI sera alors en mesure d’améliorer son site Internet ouvert à la consultation du public". For the English-speaking readers of this blog this means "Thanks to a generous gift by Luxembourg the FATF is improving its IT systems to offer to its delegates a better access to confidential doccuments. This system will be reiforced in the coming year and the FATF will be able to improve its website opened to public consultation".

We are not talking about the annual members' contribution as explained paragraph 57.

The report underline a GENEROUS GIFT by a jurisdiction where professionals focus on the growth and do not care of business ethics as demonstrated by the restrictive vision of CSR, which is limited to private sponsorship and may be a kind of money laundering.

The report underline a GENEROUS GIFT by a jurisdiction where, according to Transparency International, 6 % of respondents reported they paid a bribe to obtain a service.

The FATF is visiting Luxembourg next year. Some might see in the GENEROUS GIFT an attempt to be in the FATF's good books at a time when many people realise the strong gap between the legal and regulatory framework and
1) what is enforced
2) and even the FATF Recs.

Let's imagine what would be said should one discovers that an auditee would give a GENEROUS GIFT to its auditor !!! Even though the fact is public in the report, the FATF should not accept such GENEROUS GIFT on the principle, as such behaviour definitely weakens its credibility.

I am sad to see that neither Luxembourg nor the FATF are aware of that.

08:40 Posted in Luxembourg | Permalink | Comments (0)

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