The Egmont Group is pleased to announce the release of a landmark report: “Enhancing the effectiveness of the AML/CFT mechanism through a horizontal analysis of Mutual Evaluation Reports.” This comprehensive study, led by the Financial Intelligence Units (FIUs) of Azerbaijan and Gibraltar, examines the operational effectiveness of FIUs across 23 jurisdictions in the Europe II Regional Group, focusing on Immediate Outcomes 2 (International Cooperation) and 6 (Use of Financial Intelligence), as well as Recommendations 29 and 40 of the FATF standards.
Key Insights
- Systemic Challenges: The report identifies recurring challenges faced by FIUs, including the quality of Suspicious Transaction Reports (STRs), resource constraints, limited use of financial intelligence by law enforcement, and delays in international cooperation.
- Best Practices: Jurisdictions with higher effectiveness ratings demonstrate robust IT systems, proactive intelligence dissemination, strong inter-agency cooperation, and timely international information exchange.
- Recommended Actions: The study calls for strengthening FIU resourcing and analytical capacity, improving STR quality and timeliness, expanding spontaneous international information sharing, and enhancing strategic analysis capabilities.
Strategic Implications
The findings offer actionable recommendations for both national authorities and the Egmont Group:
- Elevate FIU operational independence and autonomy and resources
- Embed FIU outputs into law enforcement workflows
- Modernize international cooperation practices
- Promote peer learning and technical assistance
Why This Matters
This horizontal analysis provides an evidence base for reforms that can improve operational outcomes, enhance effectiveness ratings, and strengthen the contribution of FIUs to the global AML/CFT framework. It underscores that technical compliance is only the starting point—true effectiveness depends on how standards are implemented in practice.
Access the Report
The full report is available for download here and may be reproduced for educational or non-profit purposes with proper acknowledgement.
