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MONEYVAL: Committee of Experts on the Evaluation of Anti‑Money Laundering Measures & the Financing of Terrorism

Definition

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) is a permanent monitoring body of the Council of Europe, entrusted with assessing compliance of its member states with international standards on combating money laundering, terrorist financing, and proliferation financing. 

MONEYVAL was established in 1997 under the designation PC-R-EV and effectively elevated to an independent monitoring mechanism on 1 January 2011. 

Purpose & Scope

MONEYVAL’s mission is multi-faceted and includes:

  • Assessing member jurisdictions’ technical compliance with the Financial Action Task Force (FATF) Recommendations and the effectiveness of their AML/CFT/CPF (Countering the Financing of Terrorism & Proliferation Financing) regimes. 

  • Conducting mutual evaluations, peer reviews, follow-up monitoring, and thematic reviews to identify typologies, trends, and effectiveness gaps.

  • Making recommendations to national authorities and providing technical guidance to strengthen institutional and legal frameworks. 

  • Contributing to the FATF Global Network by cooperating with other FATF-style regional bodies (FSRBs) and participating in international standard-setting dialogues. 

Membership & Jurisdiction

MONEYVAL covers jurisdictions primarily within Europe, including:

  • Member States of the Council of Europe that are not members of the FATF. 
  • Territories and non-Member States of the Council of Europe, such as the Holy See and some Crown Dependencies under UK jurisdiction. 
  • Member and observer states participate in plenaries, ensuring broad participation across Europe. 

Operational Framework & Methodology

MONEYVAL employs a structured process for evaluation:

  • Mutual evaluations assess technical compliance (i.e., laws, regulations, and supervisory frameworks) and effectiveness (i.e., outcomes achieved in practice). 
  • Follow-up mechanisms monitor jurisdictions’ progress post-evaluation.
  • Horizontal reviews analyse cross-jurisdictional trends and typologies for emerging risks.
  • Collaboration with FATF via the FATF Methodology ensures alignment with global standards. 

Strategic Priorities

MONEYVAL’s strategy for 2023-2027 emphasizes:

  • Strengthening its role in the FATF Global Network and improving governance and visibility. 
  • Launching the sixth round of mutual evaluations and enhancing focus on effectiveness, asset recovery, and operational outcomes. 
  • Developing technical assistance coordination, improving synergies within the Council of Europe, and raising political awareness about AML/CFT risks.

Importance in AML/CFT Compliance

For financial institutions and supervisory authorities, MONEYVAL’s work provides several critical benefits:

  • It offers an independent benchmark of jurisdictions’ AML/CFT regimes, influencing country risk assessments and correspondent banking relationships.
  • Mutual evaluation reports signal weak spots in national systems, helping institutions tailor risk-based controls and customer due diligence.
  • As part of the global AML/CFT architecture, MONEYVAL helps ensure that Europe-based jurisdictions maintain up-to-date frameworks aligned with FATF expectations.

Challenges & Considerations

Despite its influence, MONEYVAL faces several challenges:

  • Variation in legal and supervisory frameworks among its jurisdictions complicates the standardisation of assessments.
  • Emerging risks such as virtual assets, digital finance, and proliferation financing require rapid adaptation of methodology.
  • Ensuring that evaluation findings translate into sustained operational change, rather than remaining academic exercises, remains a persistent issue.

Summary

MONEYVAL plays a vital role in the European and global fight against financial crime.

As an independent monitoring body, it evaluates jurisdictions, supports institutional strengthening, and drives alignment with FATF standards.

For firms operating in or with European jurisdictions, understanding MONEYVAL reports, recommendations, and evaluations is essential for sound risk management and regulatory compliance.

References

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