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Maldives Takes a Risk-Based Approach to Anti-Money Laundering Efforts

New Strategy to Combat Money Laundering and Terrorist Financing

The Financial Action Task Force (FATF) has emphasized the importance of adopting a risk-based approach to anti-money laundering and terrorist financing efforts, with a specific focus on the Maldives. This new strategy allows countries to tailor their approaches to address unique risks and threats in their respective regions.

What is a Risk-Based Approach?

A risk-based approach enables governments, regulatory bodies, and financial institutions to identify, assess, and understand money laundering and terrorist financing risks. By doing so, they can allocate resources more efficiently and effectively. This approach allows authorities to focus on high-risk areas while simplifying regulations for lower-risk activities.

Benefits of a Risk-Based Approach

The benefits of a risk-based approach include:

• Prevention of de-risking behavior
• More efficient allocation of resources
• Improved understanding of money laundering and terrorist financing risks
• Enhanced global cooperation

New Guidance Document

A new guidance document provides insights into designing and implementing a risk-based approach for the banking sector. The document takes into account national risk assessments and legal frameworks, and aims to foster a shared understanding of this approach among regulatory bodies and financial institutions.

Maldives Embracing a Risk-Based Approach

The FATF’s recommendations are designed to enhance global cooperation and combat money laundering and terrorist financing activities. In the Maldives, this shift towards a risk-based approach is seen as a crucial step in strengthening anti-money laundering efforts.

Getting in Touch with the FATF Secretariat

For more information on this development, contact the FATF Secretariat at +33 (0)1 45 24 90 90 or email contact@fatf-gafi.org.