Policy and Key Activities

ADB was one of the first multilateral development banks to address risks to financial sectors arising from money laundering through regional and country-specific assistance programs. These efforts included encouraging reforms in the context of financial sector-related programs in Indonesia and Vanuatu in 1998 and providing technical assistance (TA) to nine developing member countries (DMCs) from the Asia and Pacific region through regional TA in 2000.

A working paper was discussed by ADB's Board of Directors on 13 September 2002 followed by adoption of the first AML/CFT policy in 2003. On 1 July 2010, ADB adopted its curent policy on AML/CFT activities: Enhancing the Asian Development Bank's Role in Combating Money Laundering and the Financing of Terrorism ("Policy").

The Policy has four key elements:

  • assisting DMCs to establish and implement effective legal and institutional systems to combat money-laundering and the financing of terrorism;
  • increasing collaboration with other international and donor organizations;
  • strengthening internal controls; and
  • enhancing ADB staff capacity.

ADB projects and technical assistance

In assisting the DMCs in developing and strengthening their AML/CFT regimes, the key activities are policy dialogues between ADB and individual DMCs in developing financial-sector and governance-related projects and TA (including regional TAs). At one level, these dialogues (and particularly the incorporation of AML/CFT-related components into reform programs) help the authorities to devise and implement AML/CFT policies. At another level, ADB staff adds value by sharing technical expertise and experience regarding international law and standards pertaining to AML/CFT requirements and as regards the application of these requirements (including in other DMCs in the region).

Going forward

In April 2008, a Board information paper was published. It reviewed ADB's AML/CFT activities between April 2003 and March 2008, including the achievements and lessons learnt, and identified priorities for ADB's future AML/CFT activities. The focus of ADB's work going forward under the Policy will be to:

  • further AML/CFT developments in DMCs through continuing with calibrated interventions to support the efforts of the DMCs in meeting international standards, particularly with regard to the circumstances in the individual DMCs and in the region;
  • continue collaboration with international organizations and donor agencies through coordinating efforts and sharing experiences with the DMCs and contributing to broader AML/CFT development from the regional perspective;
  • continue enhancing and implementing internal control procedures; and
  • ensure staff keep abreast of AML/CFT developments and disseminate relevant information for ADB staff capacity building to optimize the support provided to DMCs.

ADB's AML/CFT activities are carried out by staff in the regional departments, the Central Operations Services Office, the Controller's Department, the Office of the Auditor General, the Office of the General Counsel and the Treasury Department. Staff from the Office of the General Counsel serve as focal points for AML/CFT activities.

Other AML/CFT activities

Within ADB, staff focus on strengthening and implementing internal control procedures, and enhancing staff capacity through developing knowledge-based products.

ADB also works closely with its counterparts, notably:

Presentations

Related Links

Enhancing the ADB's Role in Combating Money Laundering and the Financing of Terrorism
Review of Enhancing the ADB's Role in Combating Money Laundering and the Financing of Terrorism