FATF Public Consultation on AML/CFT Standards revisions

The proposed updates address unintended consequences of current AML/CFT measures and aim to refine the risk-based approach with more proportional measures.

These include:

• Replacing “commensurate” with “proportionate” to clarify risk-based expectations and align with inclusion frameworks;
• Encouraging, not just allowing, simplified measures for lower-risk situations to foster financial inclusion;
• Requiring supervisors to comprehensively review institutions’ risk mitigation to prevent overcompliance; and
• Acknowledging that digital identity systems can lower risks in non-face-to-face interactions

✅ Organisations should prepare for these changes by reassessing their risk-based approaches and embracing technology that supports proportional compliance measures. Ensuring that relevant technology systems are recalibrated to adapt to new standards is crucial for effective implementation.

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