Here is the converted article in Markdown format: FATF Unveils New Guidance to Help Regulators Combat Money Laundering, Terrorist Financing
Strengthening Global Efforts Against Money Laundering and Terrorist Financing
The Financial Action Task Force (FATF) has released new guidance for supervisors and regulators worldwide to strengthen global efforts against money laundering and terrorist financing.
Risk-Based Approach to Combating Money Laundering, Terrorist Financing, and Proliferation Financing Risks
The guidance provides a risk-based approach to ensure that private sector actors address the most relevant risks while avoiding an unwarranted burden on lower-risk sectors, entities, or activities. This approach aims to improve the effectiveness of supervisors in helping regulated entities increase their awareness and understanding of money laundering, terrorist financing, and proliferation financing risks.
Digital Identity Guidance
FATF has also released guidance on digital identity, which will help governments, financial institutions, virtual asset service providers, and other regulated entities determine whether a digital ID is appropriate for use in customer due diligence. Reliable digital ID can make it easier, cheaper, and more secure to identify individuals in the financial sector and help with transaction monitoring requirements.
Recent Publications from FATF
- Countering Ransomware Financing: A report analyzing the methods used by criminals to carry out ransomware attacks and how payments are made and laundered. The report proposes actions countries can take to disrupt ransomware-related money laundering.
- Ethnically or Racially Motivated Violent Extremism: A report examining how various actors operating under the umbrella of racially- or ethnically-motivated terrorism finance their activities.
- Trade-Based Money Laundering: Risk Indicators: A joint publication with the Egmont Group identifying risk indicators for trade-based money laundering, a complex and widely used technique that helps move billions of dollars in proceeds for criminals around the world.
Essential Tools for Governments and the Private Sector
These guidance documents and reports are essential tools for governments and the private sector to understand emerging illicit finance trends and adapt their anti-money laundering (AML), combating the financing of terrorism (CFT), and proliferation financing (PF) regimes accordingly.
Recent Developments
- United States Treasury Department Statements: The United States Treasury Department has issued several statements on FATF plenaries, highlighting key accomplishments and initiatives.
- Russia’s Suspension from FATF Membership: The FATF has suspended Russia from its membership due to its failure to implement anti-money laundering and counter-terrorism financing reforms.
- Financial Transparency Standards Strengthened: The organization has also strengthened financial transparency standards and updated its evaluation methodology.
International Cooperation
The FATF works closely with its member countries and regional organizations to implement its global AML/CFT/ PF policies. TFFC staff participate in each of the nine FATF-style regional bodies, which help implement FATF recommendations worldwide.