Business CW 2023 - 05 | Page 5

The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action. FATF mutual evaluations are in-depth country reports analyzing the implementation and effectiveness of measures to combat money laundering, terrorist, and proliferation financing. Curaçao will be evaluated in June 2024 by the Caribbean Financial Action Task Force (CFATF), which is one of FATF’s on its regional style bodies. More info here .

The mutual evaluation process is crucial for small businesses (SMBs) as it influences the rules that they must follow. For SMBs, the FATF review has both advantages and challenges.Following the FATF recommendations helps SMBs gain trust and credibility, which is important for their reputation. It also reduces the risk of getting involved in illegal financial activities. The FATF review can benefit SMBs by making their country more attractive to foreign investors, leading to more opportunities for growth and trade. Additionally, it encourages governments to improve their regulations, making business environments fairer and more transparent.

However, SMBs may face difficulties during the review, such as increased costs and administrative work. It is essential for governments to find a balance between effective regulations and supporting SMBs' growth.

To make the most of the FATF review, SMBs should actively engage in the process. They can provide feedback, participate in discussions, and collaborate with industry associations to influence the rules that affect their businesses. In summary, the FATF review is important for SMBs. It shapes regulations, affects market access, and ensures a safe financial system.In summary, the FATF review is important for SMBs. It shapes regulations, affects market access, and ensures a safe financial system. SMBs should stay informed, get involved, and work together to create a business environment that supports their success. Check out CBCS post on what “FATF Grey List” means.

I heard about FATF, what is it exactly?

The Importance of the FATF Review: How it affects Small Businesses