Currently, there are numerous entities involved in preventing money laundering. In previous posts, we have discussed the FATF, the Wolfsberg Group, and the European Banking Authority. In this article, we will analyze the role of MONEYVAL in preventing money laundering and terrorist financing.
The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, commonly known as MONEYVAL, is a permanent monitoring body of the Council of Europe. Its main objective is to evaluate compliance with key international anti-money laundering and counter-terrorist financing standards. It also has the authority to make recommendations to national authorities.
The Council of Europe is an international organization founded in 1949, based in Europe, with the primary purpose of safeguarding, promoting, and ensuring democracy, the rule of law, and fundamental rights across Europe.
MONEYVAL was created in 1997 under the acronym PC-R-EV. In 2010, the Committee of Ministers of the Council of Europe developed MONEYVAL’s statute in resolution CM/RES(2010)12. In 2013, the statute was modified by another resolution of the Committee of Ministers. The statute allows MONEYVAL to function as an independent monitoring body within the Council of Europe.
The evaluations conducted by MONEYVAL do not cover all 46 Council of Europe member states. Rather, they are limited to those that:
- are not members of the FATF,
- are FATF members but have requested to be evaluated by MONEYVAL as well,
- are FATF members and have requested MONEYVAL to evaluate European standards not already covered by the FATF,
- are FATF members, but certain jurisdictions or territories within these states are not FATF members.
Currently, 35 jurisdictions are monitored by MONEYVAL, 28 of which are not FATF members. These mutual evaluations are relevant to European regulation. Article 9 of the Fourth Directive enables the European Commission to determine which third countries are considered high-risk. For example, in December 2022, the Commission relied on a MONEYVAL mutual evaluation report on the jurisdiction of Gibraltar to add this territory to its list of high-risk jurisdictions.
Additionally, MONEYVAL contributes to the fight against money laundering and terrorist financing through investigations and reports based on mutual evaluations. For example, in 2015, it published a report on de-risking and how it affects MONEYVAL member states.
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