// IFF503 — The global AML architecture: FATF, FSRBs and mutual evaluations
$CATEGORY: VERITAS/IFF503

::IFF503-Q1::What is FATF's institutional status? {
    ~A treaty body with binding enforcement powers#Incorrect. FATF was established at the 1989 G7 Paris summit as a policy body hosted administratively by the OECD, with no treaty-based enforcement power of its own.
    =An intergovernmental policy-making body with no independent legal personality of its own#FATF was established at the 1989 G7 Paris summit as a policy body hosted administratively by the OECD, with no treaty-based enforcement power of its own.
    ~A specialised agency of the United Nations#Incorrect. FATF was established at the 1989 G7 Paris summit as a policy body hosted administratively by the OECD, with no treaty-based enforcement power of its own.
    ~A private industry self-regulatory organisation#Incorrect. FATF was established at the 1989 G7 Paris summit as a policy body hosted administratively by the OECD, with no treaty-based enforcement power of its own.
}

::IFF503-Q2::Which body conducted the mutual evaluation that underpinned South Africa's 2023 grey-listing? {
    ~FATF directly#Incorrect. ESAAMLG, the FSRB covering Eastern and Southern Africa, conducted South Africa's mutual evaluation, adopted in 2021, whose findings the ICRG later relied upon.
    ~The IMF#Incorrect. ESAAMLG, the FSRB covering Eastern and Southern Africa, conducted South Africa's mutual evaluation, adopted in 2021, whose findings the ICRG later relied upon.
    =ESAAMLG#ESAAMLG, the FSRB covering Eastern and Southern Africa, conducted South Africa's mutual evaluation, adopted in 2021, whose findings the ICRG later relied upon.
    ~The World Bank#Incorrect. ESAAMLG, the FSRB covering Eastern and Southern Africa, conducted South Africa's mutual evaluation, adopted in 2021, whose findings the ICRG later relied upon.
}

::IFF503-Q3::What distinguishes 'effectiveness' from 'technical compliance' in the FATF Methodology? {
    =Effectiveness measures real-world results against 11 Immediate Outcomes, while technical compliance checks legal text against each Recommendation#The 2013 Methodology split assessment into technical compliance (legal text) and effectiveness (real outcomes measured against 11 Immediate Outcomes).
    ~They are the same concept under different names#Incorrect. The 2013 Methodology split assessment into technical compliance (legal text) and effectiveness (real outcomes measured against 11 Immediate Outcomes).
    ~Technical compliance only applies to FSRB evaluations, effectiveness only to FATF evaluations#Incorrect. The 2013 Methodology split assessment into technical compliance (legal text) and effectiveness (real outcomes measured against 11 Immediate Outcomes).
    ~Effectiveness is assessed only for terrorist-financing Recommendations#Incorrect. The 2013 Methodology split assessment into technical compliance (legal text) and effectiveness (real outcomes measured against 11 Immediate Outcomes).
}

::IFF503-Q4::Which South African legislative instrument introduced the beneficial-ownership register ahead of the 2023 grey-listing? {
    ~The Tax Administration Act 28 of 2011#Incorrect. The General Laws (AML/CTF) Amendment Act 22 of 2022 amended the Companies Act and FIC Act to introduce beneficial-ownership register requirements.
    ~The Protection of Constitutional Democracy Against Terrorist and Related Activities Act#Incorrect. The General Laws (AML/CTF) Amendment Act 22 of 2022 amended the Companies Act and FIC Act to introduce beneficial-ownership register requirements.
    =The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022#The General Laws (AML/CTF) Amendment Act 22 of 2022 amended the Companies Act and FIC Act to introduce beneficial-ownership register requirements.
    ~The Prevention of Organised Crime Act 121 of 1998#Incorrect. The General Laws (AML/CTF) Amendment Act 22 of 2022 amended the Companies Act and FIC Act to introduce beneficial-ownership register requirements.
}

::IFF503-Q5::What is required before FATF will delist a jurisdiction from increased monitoring? {
    ~Only submission of a written progress report#Incorrect. The ICRG requires a confirmatory on-site visit to verify implementation, not simply legislative enactment, before recommending delisting.
    =A confirmatory on-site visit verifying that action-plan reforms are implemented in practice#The ICRG requires a confirmatory on-site visit to verify implementation, not simply legislative enactment, before recommending delisting.
    ~A new full mutual evaluation cycle#Incorrect. The ICRG requires a confirmatory on-site visit to verify implementation, not simply legislative enactment, before recommending delisting.
    ~A unanimous vote of all FSRB members#Incorrect. The ICRG requires a confirmatory on-site visit to verify implementation, not simply legislative enactment, before recommending delisting.
}

::IFF503-Q6::In which month and year was South Africa removed from the FATF grey list? {
    ~February 2023#Incorrect. The FATF plenary adopted South Africa's delisting in October 2025, following completion of its action plan and a confirmatory on-site visit.
    ~October 2024#Incorrect. The FATF plenary adopted South Africa's delisting in October 2025, following completion of its action plan and a confirmatory on-site visit.
    =October 2025#The FATF plenary adopted South Africa's delisting in October 2025, following completion of its action plan and a confirmatory on-site visit.
    ~June 2026#Incorrect. The FATF plenary adopted South Africa's delisting in October 2025, following completion of its action plan and a confirmatory on-site visit.
}

::IFF503-Q7::What is the Egmont Group? {
    =A network of national FIUs facilitating secure cross-border information exchange#The Egmont Group, founded in 1995, is the global network of over 170 FIUs that facilitates secure information exchange via the Egmont Secure Web.
    ~A UN Security Council sanctions committee#Incorrect. The Egmont Group, founded in 1995, is the global network of over 170 FIUs that facilitates secure information exchange via the Egmont Secure Web.
    ~An FSRB covering Western Europe#Incorrect. The Egmont Group, founded in 1995, is the global network of over 170 FIUs that facilitates secure information exchange via the Egmont Secure Web.
    ~A private banking industry association#Incorrect. The Egmont Group, founded in 1995, is the global network of over 170 FIUs that facilitates secure information exchange via the Egmont Secure Web.
}

::IFF503-Q8::Which institutional model does South Africa's Financial Intelligence Centre follow? {
    ~Law-enforcement model#Incorrect. The FIC sits within public administration, reporting outside the police and prosecution services, characteristic of the administrative FIU model.
    ~Judicial model#Incorrect. The FIC sits within public administration, reporting outside the police and prosecution services, characteristic of the administrative FIU model.
    =Administrative model#The FIC sits within public administration, reporting outside the police and prosecution services, characteristic of the administrative FIU model.
    ~Hybrid model with prosecutorial powers#Incorrect. The FIC sits within public administration, reporting outside the police and prosecution services, characteristic of the administrative FIU model.
}

::IFF503-Q9::What is the primary purpose of a national risk assessment (NRA)? {
    ~To satisfy an annual audit requirement for the central bank#Incorrect. The NRA is a whole-of-government exercise designed to identify and rank national ML/TF risks so that supervisory and enforcement effort can be proportionately allocated.
    =To rank a country's money-laundering and terrorist-financing risks so resources can be allocated proportionately#The NRA is a whole-of-government exercise designed to identify and rank national ML/TF risks so that supervisory and enforcement effort can be proportionately allocated.
    ~To replace the need for a mutual evaluation#Incorrect. The NRA is a whole-of-government exercise designed to identify and rank national ML/TF risks so that supervisory and enforcement effort can be proportionately allocated.
    ~To set interest-rate policy for AML-related lending#Incorrect. The NRA is a whole-of-government exercise designed to identify and rank national ML/TF risks so that supervisory and enforcement effort can be proportionately allocated.
}

::IFF503-Q10::Which FATF Recommendations have been recurring weak points in African mutual evaluations? {
    ~R.1 and R.2 on risk and coordination only#Incorrect. Beneficial ownership transparency, non-profit oversight and targeted financial sanctions implementation have repeatedly emerged as weak points across ESAAMLG and other FSRB evaluations.
    =R.24/25 on beneficial ownership, R.8 on non-profits, and R.6/7 on targeted financial sanctions#Beneficial ownership transparency, non-profit oversight and targeted financial sanctions implementation have repeatedly emerged as weak points across ESAAMLG and other FSRB evaluations.
    ~R.36-40 on international cooperation only#Incorrect. Beneficial ownership transparency, non-profit oversight and targeted financial sanctions implementation have repeatedly emerged as weak points across ESAAMLG and other FSRB evaluations.
    ~R.9-23 exclusively#Incorrect. Beneficial ownership transparency, non-profit oversight and targeted financial sanctions implementation have repeatedly emerged as weak points across ESAAMLG and other FSRB evaluations.
}