laundering and terrorism financing undermine the integrity and stability of financial systems and can have a significant adverse impact on a jurisdiction's economy. Challenges to effective supervision and prevention of laundering and financing of terrorism were exacerbated in the aftermath of the 2008 financial crisis, with financial institutions' need for funds at times undermining vigilance as to the provenance of those funds. As such, supervisors often, and prudently, focused on coping with the crisis.
Since 2009, when the first edition of this handbook was published, challenges to the integrity and stability of financial systems have continued to evolve. -laundering and terrorism financing risks continue to threaten the reputation of financial institutions and entire financial sectors, exposing institutions to the possibility of severe enforcement action by the public authorities or the loss of correspondent relation facilities by their private sector counterparts. This second edition of Preventing Laundering and Financing: A Practical Guide for Bank Supervisors reflects the evolving challenges to the integrity and stability of financial systems, recent trends in enforcement actions by country authorities, and changes to the international standards, notably the emphasis on a risk-based approach.
This practical handbook supports the implementation of international standards established by the Financial Action Task Force and other bodies by Providing examples of -laundering and terrorism financing supervisory regimes in a range of countries Describing best practices for the supervision and enforcement of -laundering and terrorism financing laws and regulations Offering practical advice on how a particular jurisdiction might incorporate enforcement of the laws and regulations on -laundering and terrorism financing into its supervisory regime.