By PAUL O’DONOGHUE, Senior Correspondent
THE FATF (Financial Action Task Force) has launched a new National Risk Assessment toolkit to help countries identify money laundering risks.
The organization said the guidance is designed to “help countries develop and strengthen their risk-based approach to fighting financial crime”.
“These practical resources will support countries in assessing their money laundering risks in line with the FATF Standards,” it said.
The toolkit covers four priority areas. These are:
- Corruption
- Virtual Assets, such as crypto
- Legal persons and legal arrangements
- The ‘informal economy’
The toolkit is available to read [HERE].
Launching the initiative, the FATF said governments can use the information while carrying out money laundering National Risk Assessments (NRAs).
It can also be used by law enforcement or the private sector.
“The toolkit is designed to be flexible, accessible, and tailored to country-specific needs,” the FATF said.
“[It] provides countries with cross-country risk insights,” the FATF said.
These include “proceeds of crime estimates”. The guide also identifies the most common types of predicate offences. These are criminal acts which generate illicit profits, such as drug trafficking.
The FATF also said the guide is to “help governments and the private sector address the highest risks, to ensure that crime does not pay”.
FATF toolkit uses
Elisa de Anda Madrazo, the FATF President, said: “I encourage everyone to make use of this new toolkit to improve our collective understanding of money laundering risks.”
“This is the essential first step to taking a risk-based approach. Which is the centrepiece of the FATF’s approach to safeguarding against crime.
She said a risk-based approach ensures “smart prioritisation of resources to combat financial crime”.
“It also means a proportionate response. Which means that activity isn’t driven into the dark where we cannot see it.
“To effectively fight financial crime, we need to have a clear understanding of the risks we face.”
The FATF, a Paris-based organization, sets international AML (anti-money laundering) standards. It also updated its National Risk Assessment Guidance, The updates reflect amendments to its recommendations.
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