Background on Elisa de Anda and GAFI
Elisa de Anda, a Mexican national and current president of the Group of Action Finance International (GAFI), announced that GAFI will evaluate the impact of the United States’ decision to classify drug cartels as terrorist organizations on the global financial system. This announcement was made following her participation in the 88th Banking Convention.
GAFI’s Role and Approach
GAFI, an intergovernmental organization founded in 1989, aims to set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system. The organization does not comment on specific tools used by countries but rather assesses the overall financial system.
De Anda clarified that GAFI will evaluate the US financial system, including this new measure, and determine its consequences. The report is expected to be released by October of the following year.
US Commitment to GAFI
Despite political changes under the Trump administration, the United States remains a highly committed GAFI member. During Trump’s first term, the US held the GAFI presidency and implemented significant changes. De Anda emphasized her ongoing collaboration with the US Department of the Treasury, stating that their commitment remains strong.
Mexico’s Stance and Banking Sector Preparedness
In response to the US decision, Mexico has engaged with the new Secretary of Hacienda y Crédito Público (SHCP) to demonstrate its commitment to addressing money laundering and terrorist financing. José Luis Stein-Velasco, HSBC’s Head of Financial Crimes for Mexico and Latin America, acknowledged that the Mexican banking sector is well-informed about combating money laundering and terrorist financing, prioritizing these issues.
However, Stein-Velasco noted that while banks are doing their part, there is room for improvement in public policies to further strengthen efforts against these illicit activities.
Key Questions and Answers
- What is GAFI? The Group of Action Finance International (GAFI) is an intergovernmental organization that sets standards and promotes effective measures to combat money laundering, terrorist financing, and other related threats.
- Why is GAFI evaluating the US decision? GAFI will assess the impact of classifying drug cartels as terrorist organizations on the global financial system, including potential consequences for international cooperation and money laundering prevention efforts.
- How has the US demonstrated commitment to GAFI under the Trump administration? Despite political changes, the US remains a highly committed GAFI member. During Trump’s first term, the US held the GAFI presidency and implemented significant changes.
- What is Mexico’s stance on the US decision? Mexico has engaged with the new Secretary of Hacienda y Crédito Público (SHCP) to demonstrate its commitment to addressing money laundering and terrorist financing. The banking sector is well-informed about combating these illicit activities, but there is room for improvement in public policies.
