History of MONEYVAL
MONEYVAL, which is known as the official name of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures, was established in 1997. The old name of MONEYVAL was PC-R-EV, then this name changed in 2002. As of January 1, 2011, MONEYVAL, the Council of Europe's monitoring body, has become a monitoring mechanism directly linked to the Committee of Ministers. MONEYVAL's functions are regulated by the general provisions of Decision Res (2005) 47 on committees and subsidiaries. Moreover, MONEYVAL was originally an observer for the Financial Action Task Force (FATF) but later became a joint member of FATF in June 2006.
It is a body of the Council of Europe that undertakes the task of evaluating compliance with the main international standards against money laundering and financing. That's way MONEYVAL's main task is to evaluate compliance with international standards in the fight against money laundering and financing of terrorism and to make recommendations to national authorities when it comes to the necessary improvements in their systems. MONEYVAL aims to make national authorities better fight AML / CTF with a dynamic mutual evaluation process, regular competitors of reports, and processes such as referee evaluation.
The main objective of MONEYVAL is to ensure that member states have effective systems against AML / CTF and comply with relevant international standards in this regard, and they have a number of tasks to achieve these goals. These tasks are as follows;
- To raise awareness about global policies against money laundering and financing of terrorism.
- To evaluate the compliance of MONEYVAL members with the relevant international standards in sectors such as finance, law enforcement, and law.
- To research ML / TF methods and techniques' typologies and publish reports on them.
- To contribute to the global fight against money laundering and financing of terrorism by working in close cooperation with organizations such as FATF, IMF, World Bank, United Nations, and the European Union
- Researching horizontal reviews of progress made by each of the assessed States to meet international standards
MONEYVAL's Monitoring Procedure and Evaluation Reports
MONEYVAL's monitoring procedure and evaluation reports are essential tools in ensuring that countries' AML/CTF regimes are effective, up-to-date, and in line with international standards.
MONEYVAL's evaluation procedure involves multidisciplinary teams consisting of legal, financial, and law enforcement experts who conduct field visits to the relevant institutions in the country under review. The teams work closely with the ministries, judiciary, tax, and law enforcement authorities, as well as financial intelligence practitioners, to assess the effectiveness of the country's AML/CTF framework. The teams analyze the legal and regulatory framework, the institutional framework, and the operational measures in place to combat money laundering and terrorist financing.
Following the field visits, the teams prepare a detailed evaluation report that includes recommendations for improving the country's AML/CTF regime. The report is then discussed and approved at MONEYVAL's general assembly meetings. Once the report is accepted, it is sent to the relevant country to verify whether the proposed changes are in compliance with the general decisions. The revised report is then published for public review.
MONEYVAL's monitoring procedure and evaluation reports serve as an essential tool in promoting effective AML/CTF regimes worldwide. The reports provide valuable insights into the strengths and weaknesses of a country's AML/CTF framework and offer specific recommendations for improvement. Countries that receive unfavorable evaluations can use the reports to identify areas for improvement and implement measures to enhance their AML/CTF framework, while countries that receive positive evaluations can use the reports to demonstrate their compliance with international standards. Ultimately, the goal of MONEYVAL's monitoring procedure and evaluation reports is to promote the effective implementation of AML/CTF measures and protect the financial system from criminal abuse.
Countries and Jurisdictions Subject to the Evaluation of MONEYVAL
There are member states that are subject to evaluation by MONEYVAL. As we mentioned, MONEYVAL evaluates compliance with basic international standards in combating money laundering and the effectiveness of terrorism financing practices in these countries. Some of these countries are:
Several bodies, countries, and organizations have been given observer status with MONEYVAL. The representatives of the observers have the right to participate in the MONEYVAL board, determined after the reports prepared by the teams mentioned. Still, they do not have the right to vote on whether this report comes into force or not. Some of these observers are:
- International Monetary Fund (IMF)
- United Nations Office on Drugs and Crime (UNODC)
- Secretariat of the Financial Action Task Force (FATF)
- World Bank
- Organization for Security and Co-operation in Europe (OSCE)
- United Nations Counter-Terrorism Committee (CTC)
- Commonwealth Secretariat
MONEYVAL's Role in Combatting Money Laundering and Terrorist Financing
MONEYVAL, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism plays a crucial role in combatting money laundering and terrorist financing. As a permanent monitoring body of the Council of Europe, MONEYVAL is responsible for assessing countries' compliance with international standards against money laundering and terrorist financing.
MONEYVAL's role in combatting money laundering and terrorist financing begins with its evaluation procedure. Through this procedure, multidisciplinary teams of legal, financial, and law enforcement experts evaluate countries' AML/CTF regimes to determine their effectiveness in combating money laundering and terrorist financing. By conducting field visits and analyzing a country's legal and regulatory framework, institutional framework, and operational measures, MONEYVAL can identify areas where improvements can be made to strengthen the country's AML/CTF framework.
Once MONEYVAL's evaluation procedure is completed, it produces an evaluation report that includes recommendations for improving a country's AML/CTF regime. This report is then discussed and approved at MONEYVAL's general assembly meetings. The report is sent to the relevant country to verify whether the proposed changes are in compliance with the general decisions. The revised report is then published for public review.
MONEYVAL's role in combatting money laundering and terrorist financing is significant as it promotes the effective implementation of AML/CTF measures and protects the financial system from criminal abuse. By evaluating and monitoring countries' AML/CTF regimes, MONEYVAL can identify weaknesses in the system and provide guidance on how to improve it. This, in turn, helps to strengthen the global fight against money laundering and terrorist financing.
Moreover, MONEYVAL's evaluations serve as a tool for promoting international cooperation in the fight against money laundering and terrorist financing. Countries that receive unfavorable evaluations can use MONEYVAL's recommendations to identify areas for improvement and implement measures to enhance their AML/CTF framework. The reports can also serve as a basis for technical assistance and capacity-building programs to help countries strengthen their AML/CTF regimes.