FATF's mutual evaluation process assesses countries' technical compliance with AML/CFT standards and the _____ of their frameworks in achieving desired outcomes like reduced money laundering risks.
- cost
- speed
- effectiveness
- complexity
Answer: effectiveness
Since 2013, FATF evaluations focus on both technical compliance (laws/regulations) and effectiveness (real-world impact). Effectiveness ratings assess whether countries achieve immediate outcomes (e.g., prosecutions, asset recovery, preventive measures), driving reforms that meaningfully disrupt illicit finance.