FATF Guidance on AML/CFT measures and financial inclusion, with a supplement on customer due diligence

FATF Guidance which focuses on AML/CFT (anti-money laundering / countering the financing of terrorism) approaches to take when dealing with unbanked, underserved people who may lack access to the formal financial system and may rely primarily upon cash and lack reliable identification documents.

Issues arise in dealing with documentation in countries where financial inclusion challenges are present such as those concerning Know York Customer (KYC), Customer Due Diligence (CDD) and Customer Identification and Verification procedures. The FATF recognizes that the unintended consequences of AML/CFT measures which are too strict can include financial exclusion of both consumers and business from the formal financial system, as well as those in low income brackets and those who may be transient such as refugees. Hence the FATF sets forth a risk-based approach with reasonable flexibility to apply in financial inclusion situations which is discussed within the guidance.

Document Details

Document Type: 
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Year of Document: 
2017
Date of Document: 
Wednesday, November 1, 2017
Language (This Document): 
English

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