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Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT): International Guidelines and Recommendations

This document provides a compilation of guidelines, opinions, reports, and recommendations from various international and European organizations related to AML and CFT. Here are some key points summarized below.

European Banking Authority (EBA)

The EBA has issued several guidelines and opinions on managing money laundering/terrorist financing risks when providing access to financial services.

  • Guidelines on policies and controls for effective management of ML/TF risks: These guidelines provide principles and guidance on designing policies and controls to manage the risk of money laundering and terrorist financing.
  • Guidelines on remote customer onboarding solutions under Article 13(1) of Directive (EU) 2015/849: This guideline aims to ensure that financial institutions apply appropriate measures when onboarding customers remotely.
  • Opinion on de-risking and its impact on access to financial services: The EBA has expressed concerns about the risks associated with “de-risking” practices, which may limit access to financial services for certain clients.
  • Guidelines on risk-based supervision: These guidelines provide principles and guidance on implementing a risk-based approach to supervising banks.

European Insurance and Occupational Pensions Authority

The European Insurance and Occupational Pensions Authority (EIOPA) has also issued an opinion on supervisory convergence in light of the United Kingdom withdrawing from the European Union.

  • Opinion on supervisory convergence: This opinion aims to ensure that EU member states continue to apply consistent and effective supervision of insurance companies and occupational pension schemes despite the UK’s withdrawal.

Financial Action Task Force (FATF)

The FATF has issued several recommendations and guidelines on combating money laundering and financing terrorism, including:

  • Recommendations: International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation (February 2012, updated in February 2023): These standards provide a framework for countries to combat money laundering and financing terrorism.
  • Guidelines:
    • Beneficial Ownership for Legal Persons: This guideline aims to ensure that financial institutions verify the beneficial ownership of legal persons when conducting customer due diligence.
    • Risk-Based-Approach for Virtual Assets and Virtual Asset Service Providers: This guideline provides principles and guidance on applying a risk-based approach to virtual assets and virtual asset service providers.
    • Proliferation financing risk assessment and mitigation: This guideline aims to help financial institutions assess and mitigate the risks of proliferation financing.
    • Risk-Based Supervision: This guideline provides principles and guidance on implementing a risk-based approach to supervising financial institutions.
    • Digital Identity: This guideline aims to ensure that financial institutions implement robust digital identity verification processes for customers.
    • Correspondent Banking: This guideline provides principles and guidance on correspondent banking relationships, including due diligence requirements.
    • Effective Supervision and Enforcement by AML/CFT Supervisors of the Financial Sector and Law Enforcement: This guideline aims to promote effective supervision and enforcement by anti-money laundering/combating financing terrorism (AML/CFT) supervisors of the financial sector and law enforcement.

Basel Committee

The Basel Committee has issued guidelines on sound management of risks related to money laundering and financing of terrorism, as well as guidance on applying core principles for effective banking supervision to financial inclusion.

  • Guidelines on sound management of risks related to money laundering and financing of terrorism (revised in July 2020): These guidelines provide principles and guidance on managing the risk of money laundering and terrorist financing.
  • Guidance on the application of core principles for effective banking supervision to financial inclusion: This guideline aims to promote effective banking supervision that supports financial inclusion.