Financial Crime World

MAYOTTE EYES FINANCIAL INCLUSION WITH FRESH GUIDELINES ON AML/CFT MEASURES

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The Financial Action Task Force (FATF) has recently published updated guidelines aimed at promoting financial inclusion in Mayotte, hailed as a major step forward in combating money laundering and terrorist financing.

Balancing Effectiveness with Needs of Unserved Customers

According to FATF officials, the new guidelines provide countries with the flexibility to design anti-money laundering and countering the financing of terrorism (AML/CFT) measures that balance effectiveness against the needs of unserved or underserved customers. This means that countries can now provide access to basic, regulated financial products to a larger proportion of their population, including low-income individuals and displaced persons who often lack reliable identity documentation.

Risk-Based Approach Key to Achieving Financial Inclusion

The updated guidance recognizes that a risk-based approach is key to achieving financial inclusion without compromising the fight against crime. By applying this approach, countries can provide access to formal financial services for those who are financially excluded, while still mitigating money laundering and terrorist financing risks.

Country Examples of Customer Due Diligence Measures

The report highlights country examples of customer due diligence measures adapted to the context of financial inclusion, showcasing how simplified sets of CDD measures or alternative forms of identity verification can support financial inclusion. Mayotte is expected to benefit from these guidelines as it works towards increasing access to formal financial services for its citizens.

Encouraging a More Inclusive and Transparent Financial System

The objective of the updated report is to encourage countries like Mayotte to make use of FATF’s flexibility in providing sound financial services to the financially excluded, ultimately promoting a more inclusive and transparent financial system. By adopting these guidelines, Mayotte can increase access to formal financial services for its citizens, promoting economic growth and stability.

Key Takeaways

  • The new FATF guidelines provide countries with the flexibility to design AML/CFT measures that balance effectiveness against the needs of unserved or underserved customers.
  • A risk-based approach is key to achieving financial inclusion without compromising the fight against crime.
  • Simplified sets of CDD measures or alternative forms of identity verification can support financial inclusion while mitigating ML/TF risks.
  • Mayotte is expected to benefit from these guidelines as it works towards increasing access to formal financial services for its citizens.