The External Relations Department of the International Monetary Fund has released the Communique (see link to full text below) approved following a meeting of the International Monetary and Financial Committee of its Board of Governors yesterday. It was the ninth meeting of the IMFC.
The Committee underscored the importance of:
*IMF technical assistance in supporting members’ efforts to build institutional capacities and implement sound economic policies and financial systems, which will lay the foundations for sustained growth and poverty reduction.
*Further determined action by the international community to combat money laundering and the financing of terrorism.
In this latter connection, it welcomed the significant progress that has been made under the 12-month IMF/World Bank pilot program of AML/CFT assessments. The Committee endorsed the recent decision by the Executive Board to make the scope of the IMF’s involvement in AML/CFT assessments *”comprehensive and a regular part of the IMF’s work.”* It encouraged all international organisations and bodies to work together closely in conducting assessments and delivering critically needed technical assistance. Additionally, the Committee urged all members to **adopt and implement the revised FATF 40 + 8 Recommendations as the accepted international standard**.
John Snow, Secretary of the U.S. Treasury, welcomed the IMF’s work in the financial sector, including initiatives relating to Financial Soundness Indicators and the Financial Sector Assessment Program. Particularly, he also applauded this recent decision on anti-money laundering and terrorist financing. He said protecting the integrity of the international financial system is an essential IMF duty, and that Treasury looks forward to rapid implementation of this program. *”This very positive step reflects the close collaboration and hard work of the World Bank, the IMF and the Financial Action Task Force (FATF). The next step is to move forward in implementing the program to assess country compliance and help countries identify and address shortcomings in their terrorist financing and money laundering regimes. This is critical to winning the war against terrorism and to help anchor the foundations of sustainable growth and development. The United States is ready to join international efforts to provide further technical assistance to help countries build capacity in the areas identified.”*
Generally, topics discussed at the IMFC Meeting included:
* The Global Economy and Financial Markets – Sustaining the Recovery
* Crisis Prevention and IMF Surveillance Across the Membership: Priorities, Tools, and Modalities
* Enhancing IMF Support to Low-Income Members: Instruments and Financing; IMF-World Bank Collaboration; and Promoting Debt Sustainability
Recognising that the IMF’s effectiveness and enhanced credibility as a cooperative institution also depends on all members having appropriate voice and representation , it was agreed that efforts should continue to be made to enhance the capacity of developing and transition countries to participate more effectively in IMF decision-making.