From an early stage, the research undertaken by the Working Group, led by Mike Burley and his team from the Independent Commission Against Corruption Hong Kong, indicated that APG members consider corruption to be an issue of high concern. Also, that corruption had a detrimental effect on their ability to effectively implement the international standards on anti-money laundering and combating the financing of terrorism (AML/CFT).

In June 2005, a joint Plenary session was held by the Finance Action Task Force (FATF) and the APG. One of the topics of discussion was the links between money laundering and corruption, and the joint Plenary agreed to explore this issue further by way of a joint project between the FATF and the APG. Members agreed that such a project should explore not only the specific issue of the laundering of the proceeds of corruption but the more general issue of how corruption can inhibit the effective implementation of AML/CFT systems. The FATF and APG Secretariats subsequently prepared a Note for consideration by FATF and APG members outlining the process for the establishment of a dedicated Project Group and suggesting options for future work that the Project Group might consider.

FATF and APG members adopted this Note in October and established the Project Group, consisting of five member jurisdictions, each from the FATF and the APG. The Project Group is currently preparing a paper proposing some concrete options for future work for consideration and adoption by both FATF members during the February Plenary in Cape Town, and by APG members 'out of session'. The Project Group has also contacted international and regional anti-corruption organisations to identify current developments in this area and to ensure that there is no duplication of work.

This project promises to be a very fruitful collaboration looking into improving our understanding of the links between some of the most serious challenges the international community faces : corruption, money laundering and the financing of terrorism. It is hoped that as a result of the work of the Project Group, jurisdictions in the Asia/Pacific region will be better equipped to ensure that their AML/CFT systems are not undermined by corruption and be encouraged to take preventative measures in their AML/CFT systems to ensure effective implementation of the international standards.