AML/CTF—FATF updates guidance to support financial inclusion through risk-based AML/CTF measures

Article summary

The Financial Action Task Force (FATF) has published updated guidance on financial inclusion and anti-money laundering (AML) and counter-terrorist financing (CTF) measures. The guidance encourages countries and financial institutions to implement proportionate, risk-based approaches to expand access to formal financial services, particularly for underserved and vulnerable populations. It follows revisions to Recommendation 1 of the FATF Standards, which reinforce the expectation that AML/CTF controls should be applied using a risk-based approach and promote financial inclusion. The guidance introduces a revised assessment methodology to ensure that future evaluations focus on the practical application of risk-based AML/CTF measures.