Deadline: 08-Jul-2024
The Bureau of International Narcotics and Law Enforcement Affairs (INL) of the U.S. Department of State announces an open competition for organizations to submit applications to carry out a project to bolster the capacity of obligated entities and government supervisors in El Salvador to develop and implement effective Anti-money Laundering (AML) and Counter Terrorist Finance (CFT) compliance programs consistent with international standards and Financial Action Task Force (FATF) recommendations.
Project Goal(s) and Objectives
- Project goal: Economic sectors and host-government supervisors adopt a risk-based approach to AML/CTF compliance in order to identify suspicious activity and provide better financial intelligence through reporting requirements to El Salvador’s Financial Intelligence Unit (FIU) consistent with international standards and FATF’s recommendations. The adoption of this program will enhance security, promote financial stability, reduce crime, foster economic prosperity, and safeguard the Salvadoran financial system from money laundering practices used by criminal enterprises.
- Objective 1: Obligated entities within specific economic sectors, which pose a high-risk for money laundering, adopt and implement risk-based AML/CFT compliance programs in coordination with appropriate government regulators.
- Objective 2: The FIU and key AML regulators effectively supervise obligated entities to ensure the implementation of risk-based AML/CFT compliance programs.
Funding Information
- Total available funding: $1,000,000.00
- Award amounts: maximum of $1,000,000.00
- Length of performance period: 24 months
- Anticipated program start date: September 2024
- Number of awards anticipated: 1 award
Project Activities and Deliverables
- Activity 1.1: Within 60 days, using El Salvador’s most recent AML national risk assessment as a starting point, and in coordination with the FIU and INL, select three economic sectors which pose a high-risk of money laundering.
- Activity 1.2: Within 90 days and throughout the rest of the project, in coordination with FIU and relevant government regulatory authorities, implement capacity building activities to include seminars, roundtables, trainings, and workshops aimed at the private sector and the obligated entities within the selected economic sectors to strengthen AML prevention and detection through a risk-based approach to compliance, risk-management strategies, and financial reporting mechanisms consistent with Salvadoran law and international standards.
- Activity 1.3: Within one year, develop procedures, guidance, protocols and/or manuals and institutionalize best practices aimed at selected economic sectors.
- Activity 1.4: Within two years, work with selected economic sectors to design and implement a toolkit for detection and analysis of unusual operations and the reporting of suspicious transactions.
- Deliverable 1: Obligated entities within three economic sectors successfully implemented and institutionalized guidance, procedures, protocols, reporting mechanisms, and a tool kit for detection of unusual operations with a risk-based approach.
- Activity 2.1: Within 60 days, in coordination with the FIU and INL, select key government AML regulators and supervisors aligned with selected high-risk economic sectors.
- Activity 2.2: Throughout the two-year period, provide capacity building activities, technical advice, and mentoring to key AML host-government supervisors in developing a risk-based AML/CFT approach to each selected economic sector, including best practices in AML prevention and supervision, and financial reporting.
- Activity 2.3: Within one year, work with selected supervisors and regulators to develop an anti-money laundering guide for selected economic sectors which explains the money laundering vulnerabilities, threats, and risks in each economic sector in El Salvador, consistent with FATF recommendations.
- Activity 2.4: Provide training on the fundamentals of detecting, deterring, and preventing money laundering practices to obligated entities and corresponding supervisors.
- Deliverable 2: Supervisors and regulators of selected economic sectors have developed and disseminated an anti-money laundering guide, effective supervisory and financial reporting mechanisms consistent with FATF recommendations and a risk-based AML/CFT approach. In addition, selected economic sectors and supervisors participated in trainings on fundamentals of money laundering practices to identify and report suspicious transactions.
Participants and Audiences
- Obligated entities and businesses
- Compliance officers
- Government regulators and supervisors
- The Financial Intelligence Unit (FIU)
Priority Region/Countries
- El Salvador
Eligibility Criteria
- The following organizations are eligible to apply:
- U.S.-based non-profit/non-governmental organizations (NGOs);
- U.S.-based educational institutions subject to section 501(c)(3) of the U.S. tax code or section 26 US 115 of the US 115 of the U.S. tax code;
- Foreign-based non-profits/non-governmental organizations (NGOs);
- Foreign-based educational institutions.
For more information, visit Grants.gov.