FATF invite for China

PARIS - The Financial Action Task Force (FATF) welcomed China as an observer to its mid-February meeting in Paris. According to a statement from the FATF, the invitation to China followed commitments made by the Chinese government to implement the FATF's 40+9 recommendations, to undergo a mutual evaluation and to play an active role in the fight against money laundering and terrorism financing both regionally and around the world. China has been considered a haven for money launderers by many anti-money laundering experts, and its participation in international AML efforts was termed "minimal" by a European AML regulator in off-the-cuff comments at a conference on the subject in the fourth quarter of 2004. But FATF officials have decided on a policy of engagement.

Progress was also made by the removal of several countries from the list of non-co-operative countries. The Cook Islands, Indonesia and the Philippines were all removed. The FATF's statement says all these countries have now developed AML systems and put financial intelligence units in place. Countries left on the list include Myanmar, Nauru and Nigeria.

The FATF also published a best practices paper on special recommendation nine, providing guidance on detailed measures to stop the cross-border