Egmont Group Guidelines on Cross-Border FIU Information Sharing
Explanation:
A Mutual Legal Assistance Treaty (MLAT) is a formal agreement between two or more countries that facilitates cooperation in legal and law enforcement matters, including AML investigations.
Option D (Correct): MLATs allow governments to share financial intelligence, request legal assistance, and conduct joint investigations.
Option A (Incorrect): A Memorandum of Agreement (MOA) is typically a non-binding contract used for general business or governmental cooperation.
Option B (Incorrect): A Declaration of Understanding is an informal agreement and does not provide a legal framework for law enforcement cooperation.
Option C (Incorrect): A Memorandum of Understanding (MOU) is often used for informal cooperation but lacks the legal enforceability of an MLAT.
Option E (Incorrect): A Request for Urgent Information is not a recognized international legal instrument.
Best Practices for Cross-Border AML Cooperation:
Use MLATs to request access to financial records in foreign jurisdictions.
Collaborate with Financial Intelligence Units (FIUs) via the Egmont Group.
Leverage FATF's International Cooperation Review Group (ICRG) for guidance.
Reference:
FATF Recommendation 37 (International Cooperation & MLATs)