FATF Guidance on Anti-Money Laundering and Terrorist Financing Measures and Financial Inclusion

  • Date Posted: February 21, 2012
  • Organizations/Projects: World Bank
  • Document Types: Guidance
  • Donor Type: Multilateral Organization

The promotion of well regulated financial systems and services is central to any effective and comprehensive AML/CFT regime. However, applying an overly cautious approach to AML/CFT safeguards can have the unintended consequence of excluding legitimate businesses and consumers from the financial system.

There are many reasons (unrelated to AML/CFT measures) why financially excluded and underserved groups may not be able to take advantage of mainstream financial service providers. This guidance paper focuses on ensuring that AML/CFT controls do not inhibit access to well regulated financial services for financially excluded and underserved groups, including low income, rural sector and undocumented groups. It extensively explores the initiatives to address financial inclusion within the AML/CFT context taken in developing countries, since this is where the challenge is the greatest, but it also considers examples of action taken in developed countries.

The guidance reviews the different steps of the AML/CFT process (Customer Due Diligence, record-keeping requirements, reporting of suspicious transactions, use of agents, internal controls), and for each of them, presents how the Standards can be read and interpreted to support financial inclusion. This project was conducted in partnership with the World Bank and the Asia/Pacific Group on Money Laundering (APG) and in consultation with the financial industry.

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