IMF directors have agreed these assessments 'do not contravene the prohibition of the Fund to exercise law enforcement powers'.

The decision follows a 12-month pilot involving cooperation with the World Bank and FATF on improving global money laundering standards.

This has sparked IMF conclusions that although compliance with FATF's original 40 recommendations is widespread, it is weaker with its newer (2001) eight special recommendations on terrorist financing.

It noted many poorer countries have installed 'the legal elements' of anti-money laundering regimes, but 'implementation remains a challenge'. Noted problems include 'poor coordination amongst government agencies, ineffective law enforcement, weak supervision, inadequate controls among financial firms, and shortcomings in international cooperation'.

Meanwhile, the European Commission has released its report on how EU member states are implementing the 2001 EU framework decision on money laundering.

Despite a deadline of December 2002, the Commission noted various implementation problems. For instance, Austria, Greece, Luxembourg and Portugal have failed to properly criminalise money laundering linked to certain serious crimes. Also noted Gibraltar is not covered by its terms, amongst other infringements noted by Brussels for resolution by September.