Financial Action Task Force of Latin America conducts sixth unannounced Guatemala exercise to test targeted financial sanctions implementation

The Financial Action Task Force of Latin America (GAFILAT) held its sixth unannounced simulation exercise in Guatemala City to test implementation of targeted financial sanctions triggered by potential matches against United Nations Security Council sanctions lists related to terrorist financing and the financing of the proliferation of weapons of mass destruction. The drill was used to verify national authorities’ powers, mechanisms and procedures for meeting Financial Action Task Force (FATF) Recommendations 6 and 7. Scenarios included “without delay” implementation of sanctions stemming from the United Nations Security Council 1267 Sanctions Committee and related regimes, as well as a scenario under United Nations Security Council Resolution 1373 (2001) focused on national listing processes. The exercise examined designation criteria, the powers of competent authorities, and procedures for communicating listings and delistings, including other situations affecting access to funds. The simulation highlighted the roles of Guatemala’s counter-terrorist financing and counter-proliferation financing (CFT/CFP) authorities led by the Superintendence of Banks through its Intendancy for Special Verification, alongside the Ministry of Foreign Affairs, the Public Ministry, the judiciary and obliged entities in the financial and non-financial sectors; more than 50 private-sector participants took part. GAFILAT reported that the exercise identified both good practices and opportunities to improve the processes applied by participating actors.