Module: General Practice
Q85: Which of the following statements accurately describe the history, structure, and current leadership of the global anti-money laundering framework (FATF and Basel Committee)?
The Financial Action Task Force (FATF) was established by the G7 Summit in Paris in 1989 with an initial mandate to combat the laundering of drug trafficking proceeds.
The "40 Recommendations" and the "9 Special Recommendations" (on Terrorist Financing) currently exist as two separate legal documents that member countries must ratify independently.
The Basel Committee on Banking Supervision (BCBS) focuses on the "prudential" aspect of AML, treating money laundering risks as a threat to a bank's safety and soundness, rather than just a legal compliance issue.
As of February 2026, the Presidency of the FATF is held by Elisa de Anda Madrazo of Mexico, whose two-year term focuses on enhancing the effectiveness of the global network.
The "40 Recommendations" and the "9 Special Recommendations" (on Terrorist Financing) currently exist as two separate legal documents that member countries must ratify independently.
The Basel Committee on Banking Supervision (BCBS) focuses on the "prudential" aspect of AML, treating money laundering risks as a threat to a bank's safety and soundness, rather than just a legal compliance issue.
As of February 2026, the Presidency of the FATF is held by Elisa de Anda Madrazo of Mexico, whose two-year term focuses on enhancing the effectiveness of the global network.
✅ Correct Answer: B
The correct answer is Option B. FATF was founded in 1989.
BCBS focuses on prudential risks.
Elisa de Anda Madrazo is the President (2024-2026). The recommendations are consolidated, not separate.
Global bodies are key for the IIBF AML KYC Exam 2026.
BCBS focuses on prudential risks.
Elisa de Anda Madrazo is the President (2024-2026). The recommendations are consolidated, not separate.
Global bodies are key for the IIBF AML KYC Exam 2026.