FATF Guidance on AML/CFT Measures and Financial Inclusion, with a Supplement on Customer Due Diligence

Categories : AML-CFT, Regulation of Digital Financial Services


Author: FATF

The FATF recognises that applying an overly cautious approach to anti-money laundering and countering the financing of terrorism (AML/CFT) safeguards can have the unintended consequence of excluding legitimate businesses and consumers from the formal financial system. In 2013, the FATF published the Guidance on AML/CFT Measures and Financial Inclusion, which provided support for designing AML/CFT measures that meet the goal of financial inclusion, without compromising their effectiveness in combating crime. The guidance explained how to apply the risk-based approach, reinforced in the 2012 Recommendations, in a financial inclusion context.

This 2017 supplement to the 2013 guidance provides country examples of customer due diligence measures adapted to the context of financial inclusion. Those examples illustrate how a simplified set of CDD measures or alternative forms of identity verification, for example the use of e-identity tools, can support financial inclusion, while appropriately mitigating the ML/TF risks.