About the APG
The Asia/Pacific Group on Money Laundering (APG) is a multilateral and intergovernmental task force designed to combat money laundering and terrorist financing in the Asia Pacific region. The APG, alongside being a part of the FATF’s global network, is also an associate member.
Origins of the APG
Following the establishment of the FATF-Asia Secretariat office in the Asia Pacific (APAC) in 1993, a series of gatherings were held between 1993 and 1997, called the Asia Money Laundering Symposia, across Singapore, Malaysia, Japan, and Thailand. The decision was made by the 13 countries in attendance at the 1997 Thailand symposium to establish a permanent Asia/Pacific Group on Money Laundering.
FATF and international standards
Following the decision to create an official APG in Thailand, an APG Working Party met in Beijing in July 1997 and agreed that the FATF’s Forty Recommendations “are the guiding principles for action for the creation of an effective anti-money laundering framework” and that APG members would implement those recommendations in a way that met both their unique constitutional frameworks and cultural values. Since 2012, APG members have also been required to meet the FATF’s international AML/CTF standards.
As noted in the Terms of Reference, it is a condition of membership that member states commit to implementing the FATF’s standards “without reservation”. Should a member fail to meet those standards, the punishment could vary from partial to full suspension in APG activities to even having their membership terminated.
Key functions of the APG
There are six notable functions carried out by the APG:
- Mutual evaluations: Peer-reviewing member countries’ anti-money laundering and counter-terrorism financing (AML/CTF) standards
- Technical assistance training: Coordinating bilateral and donor agency technical assistance and training to improve compliance with global standards
- Typologies research: Conducting research and analysis into money laundering (ML) and terrorism financing (TF) trends and methods
- Global engagement: Contributing to international AML/CTF policy development and FATF working groups
- Private sector engagement: Informing the public and specialists about ML/TF issues
- Coordination: Assisting member states in establishing coordination mechanisms to better utilise resources to combat ML/TF
Members and partners
The APG has continued to grow since its founding in 1997, from its initial 13 members to the current 42 (12 of whom are also FATF members). It is now the largest FATF-style regional body (FSRB). Alongside its nation-state members, the APG also includes eight observers and numerous partner organisations, including:
- Interpol
- Egmont Group
- United Nations
- International Monetary Fund
- World Bank
- Asia Development Bank
- Commonwealth Secretariat
Governance structure
As laid out in the APG’s constitutional document, the Terms of Reference, the governance structure of the APG consists of the following:
- Membership: APG members are the “ultimate decision-making body of the APG” and all decisions are made on a consensus basis
- APG Co-Chairs: The organisation has two co-chairs, one of which is permanently held by Australia, whilst the other rotates every two years and is chosen by the membership
- Governance Committee: The committee features representatives from five significant subregions of the APAC and functions as a governance and advisory group
- Secretariat: This position is run out of an office in Sydney, Australia by the Executive Secretariat, who provides administrative and policy support
Key meetings
The APG has five primary types of meetings that it holds, which are as follows:
- Annual (Plenary) Meeting
- Annual Typologies Workshop
- Governance Committee
- Mutual Evaluation Committee
- Operations Committee
Annual Plenary Meeting
This meeting happens at least once a year and is designed to discuss strategic directions and the organisation’s work program.
Annual Typologies Workshop
To better combat ML/TF, this yearly workshop gathers APG representatives and experts to discuss trends in ML/TF and related policy issues. As noted by the APG, these workshops tend to have a theme that drives discussions and aim to achieve five main goals:
- Assemble experts and regulators to share experiences and information
- Identify current practices used in ML/TF in the APAC
- Note emerging ML/TF trends in the APAC region
- Put forth suggestions to combat ML/TF
- Discuss how to improve international cooperation
Governance Committee
The committee meets at least five times a year to discuss pertinent administrative and operational matters.
Mutual Evaluation Committee
Meeting a minimum of five times a year, this committee oversees mutual evaluation (ME) programs as well as drafts of ME policy issues and reports.
Operations Committee
Meeting no less than five times a year, this committee oversees the management of the organisation’s typologies research program as well as its implementation issues program.
Strategic and business plans
Part of the APG’s requirement is to develop both a strategic plan once every four years (which lays out its missions and goals) and a business plan once a year (which provides information on the APG’s annual work program). The most recent strategic plan covers 2024-2028 and the most recent annual business plan was for 2023-24.
Key takeaways
By working closely with the FATF and numerous global partners, the Asia/Pacific Group on Money Laundering is able to continually revise and improve its anti-money laundering and counter-terrorism financing policies and strategies in the Asia Pacific region.
