13-14 September 2014. 4th international workshop on "Effective Supervision as a Mechanism for Ensuring the Participation of the Non-Financial Businesses and Professions Sectors in the AML/CFT System"

Published At Sep 13, 2018

The EAG/ITMCFM 4th international workshop on "Effective Supervision as a Mechanism for Ensuring the Participation of the Non-Financial Businesses and Professions (NFBP) Sectors in the AML/CFT System" was held in St. Petersburg on 13-14 September 2018.

The workshop was organized by the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) and the International Training and Methodology Centre for Financial Monitoring.

A list of the workshop participants included delegations from the EAG member and observer countries (Armenia, Belarus, Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Turkmenistan and Uzbekistan) and representatives of the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL).

The workshop was opened with welcoming remarks from EAG Chairperson and Deputy Director General of the AML Bureau of People's Bank of China Ms Hao Jinghua (China) and EAG Deputy Chairman and Rosfinmonitoring Director Yury Chikhanchin.

Hao Jinghua:

"The effectiveness of any supervisory and anti-money laundering framework depends on the timely and efficient dissemination by both the private and public sectors, including non-financial businesses and professions, of information on transactions and financial behaviour allegedly linked to crime and terrorism.

Traditionally, technical and capacity-building assistance was primarily provided to financial institutions, with vulnerabilities of the DNFBP sector being until recently largely outside the focus area, which explains the higher risk of its abuse for money laundering, terrorist financing and financing of other illegal activities.

According to the mutual evaluation statistics, the FATF recommendations and immediate outcomes related to the DNFBP sector and its supervision tend to pose challenges for the country being assessed. The stability of any system depends on the stability of its weakest link, a fact whose importance increases further as we embark on the 4th round of mutual evaluations."

Yury Chikhanchin:

"I would particularly like to thank international experts who, through their visit, underscored the relevance for the entire international community of the issues to be discussed at this workshop. Ms Hao's participation in today's event highlights the Eurasian Group's continuous focus on these issues, while the decision to hold it shows that we are actively preparing for the evaluation procedures.

As was quite rightly pointed out by Ms Hao, this meeting provides participants with the opportunity to exchange opinions, express their views, discuss with international experts our approaches and, possibly, correct those reporting materials that we have already prepared for submission to the international community."

The first day's keynote speaker, MONEYVAL Deputy Executive Secretary Michael Stellini, briefed participants in detail on the general trends in the countries' preparations for mutual evaluations.

Michael Stellini:

"We have already reviewed 50 reports adopted so far around the world. And we tried to conduct a comparative analysis aimed at isolating some common points that may depend on the region, the status of the supervisory authority, the type of DNFBP or something else. However, we are not dealing with exact science here. Therefore, what I’m going to talk about cannot be taken as a kind of prediction of what will happen in your country with a certain regulatory framework."

According to Mr Stellini, getting a high score in the assessment should not be the sole aspiration for countries. Instead, the focus should remain on building an effective AML/CFT system.

On the first day of the workshop, participants in the section on the key challenges to effective supervision of the non-financial businesses and professions sector discussed ways to increase the preventive role of non-financial businesses and professions. Another section was devoted to the interactive simulation game "ML/TF risks in the non-financial businesses and professions sectors. Risk management mechanisms: supervision and preventive measures".

The second day was devoted to consultations with the private sector on the management of risks faced by non-financial businesses and professions, with participants in the first section focusing on the risks facing the sectors, their identification and management; in the second discussing the experience of using information and analytical technologies for AML/CFT purposes; and in the third turning their attention to the issues of training in the context of new technologies, accessibility and revision of knowledge.

After consultations with the private sector, which took place during the workshop, participants issued the following recommendations for the EAG member states.



arising from the Consultations with the private sector at the

4th international workshop on

"Effective Supervision as a Way to Ensure the DNFBP Sectors' Involvement in the AML/CFT System"


13-14 September 2018

St. Petersburg (Russia)


Participants in the Consultations with the private sector highlighted the role of experience sharing in boosting the performance of supervisors and the non-financial businesses and professions sector in Eurasia, the importance of further developing the risk-based approach methodology and tools, and the significance of working together to introduce new technologies in feedback provision and communication between the state and the private sector.

EAG countries, as part of their preparation for mutual evaluations, should focus on the following elements of a strategy for improving the effectiveness of national AML/CFT systems:

1. FIUs and supervisors should promote ongoing coordination and cooperation with DNFBPs as a source and recipient of intelligence.

2. Contribute to the expansion of opportunities for constructive, timely and continuous information sharing, including the identification and elimination of barriers to the exchange of information with DNFBPs in the context of ML/TF risks management.

3. Contribute to the development of innovative – including remote (contact-free) – tools for monitoring supervisory response measures based on the target's risk profile.

4. Promote compliance and awareness of the non-financial businesses and professions sectors of the ML/TF risks through the use of various information sharing formats and channels.

5. Use different platforms and formats to involve the private sector in domestic and sectoral risk assessments.

6. Improve the availability of new technology-based information and training resources (remotely, using personal profiles, web portals, mobile applications, etc.).

7. Promote best practices in the identification of beneficiaries and PEPs and risk mitigation.

8. Continue to provide FATF standards trainings and outreach in Eurasia by utilizing the resources available to the EAG and ITMCFM.

9. Consolidate the efforts of the state and the private sector in developing common approaches to understanding risks and measures to mitigate them.