The Financial Action Task Force (FATF) has updated its Guidance on Financial Inclusion and Anti-Money Laundering, Countering the Financing of Terrorism, and Counter-Proliferation Financing (AML/CFT/CPF) Measures to help countries and the private sector expand access to formal financial services while applying proportionate, risk-based safeguards against illicit finance. The guidance reflects earlier changes to FATF Recommendation 1 that reinforced expectations for a proportionate risk-based approach and encouraged countries to promote financial inclusion. It focuses on unserved and underserved people, including low-income and rural groups and individuals in fragile contexts who may face challenges verifying identity, and includes practical case studies developed following a public consultation that drew more than 100 responses. Examples include processes to support account opening for asylum seekers in Sweden, an industry baseline in the Netherlands for applying AML/CFT measures across risk scenarios, and Singapore’s use of limited purpose bank accounts for individuals assessed as higher money laundering or terrorist financing risk, with enhanced monitoring and documented review processes. FATF also published revisions to its assessment methodology to align with the Recommendation 1 changes, with a stronger focus on how the risk-based approach is applied in future assessments.
Financial Action Task Force 2025-06-23
Financial Action Task Force updates financial inclusion guidance and revises assessment methodology to reinforce proportionate risk-based AML controls
The Financial Action Task Force (FATF) updated its Guidance on Financial Inclusion and AML/CFT/CPF Measures to enhance access to formal financial services with risk-based safeguards. The guidance emphasizes a proportionate risk-based approach for unserved and underserved populations and includes practical case studies. FATF also revised its assessment methodology to align with these changes, emphasizing the risk-based approach in future evaluations.