PARIS — The Financial Action Task Force (FATF) has released updated guidance on Financial Inclusion and Anti-Money Laundering and Terrorism Financing Measures, aimed at helping countries and the private sector expand formal financial access while strengthening controls against illicit finance.
The update follows FATF’s earlier strengthening of Recommendation 1 in its global standards. The revision reinforced the need for risk-based, proportionate implementation of Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) measures, with a parallel emphasis on promoting financial inclusion.
Inclusion and Integrity Go Hand in Hand
The new guidance underlines that financial inclusion and fighting financial crime are mutually reinforcing goals. Increasing transparency in the financial system not only helps keep criminals out but also strengthens law enforcement capabilities by making transactions traceable and accessible to scrutiny.
“Bringing more people into the formal financial sector is crucial to our fight against financial crime,” said FATF President Elisa de Anda Madrazo. “It reduces the size of black markets where criminals and terrorists operate, and addresses social injustice—since those excluded are often from disadvantaged communities, not because they’re high-risk, but because they lack documentation or resources.”
Guidance Rooted in Global Feedback and Real-World Examples
The guidance benefited from an extensive public consultation, incorporating over 100 responses from stakeholders including civil society, academia, regulators, and the financial sector. It features case studies from multiple countries, illustrating how the risk-based approach has been successfully applied to broaden financial access:
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Sweden: The Swedish Bankers Association collaborated with the Migration Agency to verify the identity of asylum seekers for bank account access using an online confirmation system.
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Netherlands: The Dutch Association of Banks issued a risk-based industry baseline to guide financial institutions on proportionate AML/CFT measures across various risk categories, including those listed by the EU as high-risk third countries.
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Singapore: The Monetary Authority of Singapore and local banks introduced Limited Purpose Banking Accounts for high-risk individuals, including ex-offenders, ensuring basic financial access while applying enhanced monitoring safeguards.
Facilitating Access for Underserved Populations
The FATF’s guidance emphasizes enabling access to formal financial services for underserved and unserved groups, including people in rural areas, those in fragile contexts, and individuals who lack documentation. The aim is to ensure that AML/CFT/CPF measures do not unintentionally exclude low-risk individuals from essential banking services.
Countries and financial institutions are encouraged to use risk assessments to distinguish between low- and high-risk profiles, enabling the design of targeted, proportionate controls that reduce financial exclusion while mitigating abuse.
Revised Assessment Methodology
Alongside the updated guidance, the FATF has also published revisions to its assessment methodology to reflect its latest emphasis on the risk-based approach. These changes will guide future evaluations of countries’ AML/CFT/CPF systems, ensuring that assessors prioritize inclusion without compromising enforcement.
