Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What does FATF Recommendation 26 advocate for?

1. Disbanding national AML centers.

2. Establishing national centers for AML/CFT information.

3. Restricting public access to law enforcement.

4. Providing tax incentives for compliance.

The correct answer is: Establishing national centers for AML/CFT information.

FATF Recommendation 26 emphasizes the importance of establishing national centers dedicated to anti-money laundering (AML) and counter-financing of terrorism (CFT) information. The recommendation recognizes that effective addressing of money laundering and terrorist financing requires well-coordinated efforts among different stakeholders, including law enforcement, financial institutions, and governmental agencies. By creating national centers, countries can enhance their ability to collect, analyze, and share information pertinent to AML/CFT activities. These centers serve as hubs for intelligence, enabling better collaboration, greater efficiency in investigations, and improved data management. This systematic approach also supports the development of effective regulatory frameworks and facilitates the implementation of compliance measures across various sectors. The other options do not align with the core objectives outlined in Recommendation 26. Options that suggest disbanding national AML centers or restricting public access to law enforcement run contrary to the principles of transparency, accountability, and inter-agency cooperation that are vital in combating financial crimes. Providing tax incentives for compliance, while potentially beneficial in some contexts, does not specifically address the establishment and functionality of dedicated centers for information analysis and coordination in AML/CFT efforts, which is the focus of Recommendation 26.