COVID-19 | Official online Resource and News Portal. For more information, visit www.sacoronavirus.co.za

Anti-Money-Laundering (AML) & Countering Financing of Terrorism (CFT) Risk Management in Emerging Market Banks

For banks in emerging markets, the regulatory landscape is more complicated than ever. Rules  designed to fight money laundering and root out terror finance have made the financial system safer  and more resilient but have also increased the cost and complexity of doing business in developing countries—with negative consequences for cross-border trade and the networks that link local commerce with the global financial system.  In response, many global banks operating in emerging markets have simply withdrawn correspondent banking services—everything from making wire transfers to accepting deposits to receiving documents on behalf of other banks.  Local emerging market banks need help understanding and adapting to the new global standards, particularly when it comes to risk management for Anti-Money Laundering and the Combating the Financing of Terrorism (AML/CFT). IFC has published a new Good Practice Note for banks on AML/CFT risk management.  This is designed to advance emerging market banks’ knowledge of the issue and strengthen their AML/CFT capabilities.

IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused exclusively on the private sector in developing countries. The Bank Group has set two goals for the world to achieve by 2030: end extreme poverty and promote shared prosperity in every country.

Leave a Reply