The Financial Action Task Force (FATF) published meeting insights from its Learning and Development Forum held in London on 25–26 February 2026, which focused on strengthening implementation of the risk-based approach (RBA), particularly risk-based supervision. The key message was a need to pivot from refining the RBA towards improving effectiveness, including aligning public and private sector resource allocation around a shared view of risks so supervision targets the highest risks while reducing friction for low-risk customers. Participants highlighted persistent differences in how “risk-based” and “effective” are understood across stakeholders and called for clearer national priorities to guide financial institutions and supervisory activity. The insights also emphasised trust and continuous communication as prerequisites for proportional supervision, a shift away from a “zero-failure” culture, and a stronger focus on high-value activities over defensive or low-value reporting. The forum discussion pointed to more dynamic risk identification with the private sector, including public-private partnerships (PPPs) to share operational intelligence and improve reporting outcomes for financial intelligence units (FIUs) and law enforcement agencies (LEAs), alongside the use of new technologies and “function over form” supervisory approaches. The forum is intended to support FATF’s development of a roadmap to improve global implementation of the RBA and risk-based supervision. Proposals included initiatives to increase alignment on how the RBA works in practice across authorities and the private sector, regular exchanges among supervisors, FIUs and LEAs, ensuring FATF country evaluations recognise innovative supervision models and their impact, and encouraging technology-enabled information sharing to keep pace with evolving risks.

Original source View in tracker