What is the Asia Pacific Group On Money Laundering (APG)?

The Asia Pacific Group on Money Laundering (APG) is an inter-governmental organization dedicated to implementing international standards for anti-money laundering and combatting the financing of terrorism (AML/CFT) in the Asia Pacific (APAC) region.

How Does the AGP Work?

The APG was established following efforts by the Financial Action Task Force (FATF) in the 1990s to raise global awareness of AML/CFT measures. In its formational stage, Australia set up a Secretariat with the goal of obtaining a commitment from regional partners to create a FATF-style international AML/CFT body. After the creation of the Secretariat, the Asia Pacific Group on Money Laundering was officially formed in 1997 following an agreement in Bangkok, Thailand. There were 13 founding members of the APG: 

• Australia
• Bangladesh
• China
• Hong Kong
• Japan
• New Zealand
• Philippines
• Singapore
• Sri Lanka
• Chinese Taipei
• Thailand
• The United States
• Vanuatu

Established as an “intergovernmental task force”, the Asia Pacific Group on Money Laundering does not operate under any international or legal convention but instead by agreement between member-states – under terms set out in the APG Terms of Reference. The establishment of the APG prompted the introduction of other FATF-style regional bodies (FSRB), including the Caribbean FATF (CFATF), the Eurasian Group (EAG), and the Central Africa AML Group (GABAC). In 2021, the APG has grown to include 41 member-jurisdictions, each of which has satisfied the relevant admission criteria. The admission criteria require members to:

• Recognize the need to combat money laundering, terrorism financing, and proliferation financing 
• Recognize the benefits of sharing knowledge and experience 
• Take steps to develop, enact, and implement AML/CFT legislation in accordance with international standards
• Commit to implementing decisions taken by the APGML 
• Commit to the APG’s mutual evaluation program 
• Make contributions to the APG budget 

Secretariat: The APG Secretariat is headquartered in Sydney, Australia, and acts as a focal point for all APG activities. In practice, this involves providing governance support, organizing annual meetings, providing advice and information, implementing technical assistance and training strategy, and coordinating mutual evaluations of APG members. 

Governance: Oversight of the Asia Pacific Group on Money Laundering is provided by its Governance Committee which meets five times per year. The Governance Committee handles matters relating to strategy and finance, and issues with APG membership. As an institution, the APG is accountable to its members: accordingly, it maintains an audit framework to demonstrate financial compliance and reports regularly to members on financial matters. 

Observers: In addition to its 41 member jurisdictions, the APG also includes several observer jurisdictions. These observers are either considering APG membership or are located outside APAC but are “fully supportive of the work of the APG”. As of March 2023, the APG has seven observer jurisdictions: 

• The Democratic People’s Republic of Korea
• The Federated States of Micronesia
• Kiribati
• Tuvalu
• France
• Germany
• The United Kingdom. 

The APG is also supported by a range of international organizations, including the IMF, the World Bank, the Organisation for Economic Co-operation and Development (OECD), the United Nations, the Asian Development Bank, the Egmont Group, and INTERPOL.

What Does the APG Do?

The APG’s role reflects that of the FATF in the sense that it works collectively to establish and promote AML/CFT standards across APAC. The AML standards and policy that the APG structures its role around are based on the 40 Recommendations set out by the FATF. In more detail, the APG’s role entails five primary functions:

• Mutual evaluation reports (MERs): The Asia Pacific Group on Money Laundering assesses the compliance performance of its members in implementing AML/CFT standards within their jurisdictions. The assessments are conducted via a peer-review system and published as MERs. 
• Training and technical assistance: The APG is responsible for coordinating technical assistance and training for its members across APAC to raise collective AML/CFT standards.
• Research and analysis: The APG conducts research and analysis into money laundering and terrorism financing typologies in order to better prepare and equip member states to implement AML/CFT regulations. The scope of APG research includes criminal trends, methods, risks, and the vulnerabilities of financial institutions. 
• Global development: The APG contributes to the development of international AML/CFT standards, coordinating and working with other FSRBs to achieve its objectives. 
• Private sector engagement: The Asia Pacific Group on Money Laundering works with private sector institutions across APAC, sharing information about international AML developments and offering a forum for those institutions to engage with the APG and each other. 

The Asia Pacific Group on Money Laundering is not a law enforcement or investigative organization and does not directly investigate money laundering and terrorism financing offenses. The standards that the APG develops and promotes are intended to be interpreted by members and implemented via domestic regulations.