Overview
      Financial Action Task Force (FATF)
      Relationship between AML/CFT & 
      financial inclusion 
      FATF Response 
      Financial Inclusion & the risk-based 
      approach
      Implementation of the standards 
      Ongoing work
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      Financial Action Task Force (FATF)
       Inter-governmental policy-making body:
          Members: 34 countries + 2 organisations 
          8 FATF-style regional bodies (FSRBs)
       Sets the international standards for anti-money 
       laundering, counter-terrorist financing (AML/CFT) and 
       combating proliferation financing 
       Core activities:
          Standard setting (FATF 40 Recommendations) 
          Assessing compliance
          Identify and respond to threats: high risk jurisdictions 
          and typology studies 
       Over 190 countries have endorsed the FATF Standards 
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         AML/CFT & Financial Inclusion
       Protecting the integrity of the global 
       financial system requires that the 
       largest possible range of transactions 
       falls within the AML/CFT system.
       Financial Exclusion can increase the 
       ML/TF risks
          e.g. excluded people use unregulated  
          financial channels, creating a disguise for 
          illicit funds. 
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       AML/CFT & Financial Inclusion
      An overly cautious approach to 
      AML/CFT safeguards can lead to: 
        The exclusion of legitimate 
        businesses and consumers from 
        the formal financial system
        Disproportionate costs of AML/CFT 
        compliance with regard to the 
        expected return
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                     FATF Response
       FATF Recommendations support the risk-based 
       approach (RBA).
         Methodology considers financial inclusion through 
         risk & effectiveness
       FATF has issued Guidance on:
         Financial inclusion (2013)
         New Payment Products & Services (2013)
         RBA Guidance for banking sector (2014)
       FATF statement on risk-based approach: case-by-
       case, not wholesale de-risking (October 2014)
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