FATF Public Consultation on AML/CFT and Financial Inclusion

Following the approval of the plenary, the FATF launched a public consultation, inviting views and comments on updated guidance, In particular, to further enrich the Guidance, FATF welcomes case studies on tailored measures to enable the provision of financial services in

• Non-lower risk situations such as conflict zones.
• As well as mitigating measures to address the risks associated with non-face-to-face interactions, including using artificial intelligence technologies. 

Read here

https://www.fatf-gafi.org/en/publications/Financialinclusionandnpoissues/aml-cft-financial-inclusion-public-consultation-february-2025.html

Interested stakeholders are invited to respond to the consultation by Friday, 4 April 2025 (18h00 CET).

LONG READ

The Financial Action Task Force (FATF) is considering proposals to update the FATF Guidance on AML/CFT measures and financial inclusion (the updated Guidance).

This is part of FATF’s work programme to address the unintended consequences of AML/CFT measures. FATF is inviting views and comments on the updated Guidance from interested stakeholders.

The updated Guidance proposed for public consultation reflects the recently adopted amendments to the FATF Standards with increased focus on proportionality and simplified measures in the risk-based approach, updates the

• Concept and state of financial inclusion and its relevance to financial integrity, a
• It also provides additional guidance and updated best practice examples of implementing the risk-based approach in the AML/CFT regime, focusing on simplified measures in lower-risk scenarios. 

The FATF would particularly welcome views on the following issues: 

• Is the discussion on financial inclusion and its relevance to financial integrity and financial exclusion risk in Chapter 1 sufficiently comprehensive?
• Is the guidance on assessing areas of lower risks for implementing simplified measures in Section 2.2.3 of Chapter 2 sufficient to inform balanced risk assessments? 
• Is the explanation of recently adopted Standards revisions, for example, on proportionality, encouragement of simplified measures, tailoring measures to identified risks, etc., in Section 2.3 of Chapter 2 sufficiently comprehensive?
• Would further guidance and examples on tailoring measures to address financial inclusion needs in non-lower-risk situations be required? If so, please provide relevant inputs and examples.
• Does the guidance in Section 3.2.2 and Section 3.2.3 of Chapter 3 clarify the roles of supervisors and regulated entities in implementing the risk-based approach to promote financial inclusion?
• Would further guidance and examples be required on the risks associated with non-face-to-face business relationships and transactions and how to mitigate them? If so, please provide relevant examples.
• Do the examples in the boxes throughout the Guidance and the annexes provide enough details on the range of approaches to implement the risk-based approach? 

Please provide your response, including any drafting proposals, to FATF.Publicconsultation@fatf-gafi.org with the subject line “Comments of [author] on the draft FATF FI Guidance” by Friday, 4 April 2025 (18h00 CET).

While submitting your response, please indicate your organisation's name, the nature of your activity, and your contact details.

All submissions received during public consultation will be shared with FATF delegations.  At this stage, the FATF has not approved the updated Guidance and will consider the views received to revise the text.

You may insert any specific drafting proposals directly in the attached draft text in tracked changes. 

We will use your contact information only to conduct this public consultation and to engage with you further on this issue. 

The draft text is available here = www.fatf-gafi.org/content/dam/fatf-gafi/public-consultation/Financial Inclusion Guidance-Public Consultation-Feb2025.docx.