world_organizations hard Fill in the Blank

FATF's mutual evaluation process assesses countries' technical compliance with AML/CFT standards and the _____ of their frameworks in achieving desired outcomes like reduced money laundering risks.

  1. cost
  2. speed
  3. effectiveness
  4. complexity

Answer: effectiveness

Since 2013, FATF evaluations focus on both technical compliance (laws/regulations) and effectiveness (real-world impact). Effectiveness ratings assess whether countries achieve immediate outcomes (e.g., prosecutions, asset recovery, preventive measures), driving reforms that meaningfully disrupt illicit finance.

Topic Financial Action Task Force
Exam Relevance Banking, UPSC, SSC
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