The International Monetary Fund has published guidance on applying Financial Action Task Force standards to retail central bank digital currencies, emphasizing that anti-money laundering and combating the financing of terrorism requirements apply as they do to other forms of fiat currency. Jurisdictions should conduct risk assessments before launch and update them using evidence from pilots and operations, with design choices, user groups and use cases determining the appropriate safeguards. All participants that qualify as reporting entities should be subject to AML/CFT obligations, while central banks may assume ultimate compliance responsibility if their activities meet the FATF definition of a financial institution. Privacy-preserving, tiered and offline designs can complicate customer due diligence, targeted financial sanctions, transaction monitoring and record-keeping. Simplified due diligence or exemptions should be supported by risk assessments, with at least a self-declared name required under simplified measures, while offline wallets should reconnect to the ledger periodically to support sanctions screening and timely detection of suspicious activity. Direct models may also require new central bank compliance capacity, governance arrangements separating supervisory and operational roles, and legal frameworks for oversight, information sharing and the freezing or seizure of digital assets.
2025-11-17International Monetary Fund
International Monetary Fund outlines AML/CFT practices for retail central bank digital currencies
The International Monetary Fund has outlined how Financial Action Task Force standards should apply to retail central bank digital currencies. Jurisdictions should assess money laundering and terrorism financing risks before launch and tailor safeguards to each currency’s design and use cases. Privacy, tiered access and offline payments require specific controls for customer due diligence, sanctions screening, transaction monitoring and record-keeping.