High Level Principles and Procedures
Following a meeting in December 2005 between the FATF and representatives of the banking and securities sectors, FATF agreed to establish an Electronic Advisory Group (EAG) on the risk-based approach as part of its outreach to the private sector. The EAG, which is a sub-group of the FATF Working Group on Evaluations and Implementation (WGEI) was set up in March 2006, and was chaired by Mr. Philip Robinson (Financial Services Authority, United Kingdom) and Mr. Rick Small (GE Money, United States). Membership of the Group has consisted of FATF members and observers, as well as representatives from the banking and securities sectors that volunteered to work on the issue of the risk-based approach to combating money laundering and terrorist financing (referred to throughout this paper as "the risk-based approach" (RBA)).
The work of the EAG followed a number of steps: responses to a questionnaire on risk-based approach were obtained, then the high level elements of a risk-based approach were identified and an outline of the EAG report was agreed. There then followed extensive consultation with both public and private sector members of the EAG, and a final report of the EAG to WGEI setting out draft guidance on the implementation of a risk based approach was provided in April 2007. After further international consultation with both public and private sectors, this Guidance Paper was adopted by the FATF at its June 2007 Plenary. This is the first occasion that the FATF has developed guidance using a public-private sector partnership approach.
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