The Financial Action Task Force (FATF) has revised its Guidelines on Financial Inclusion and Anti-Money Laundering and Counter-Terrorist Financing Measures. This update aligns with the goals of promoting financial inclusion while combating illegal activities through a risk-based approach.

Previously, FATF reinforced its Recommendation 1 in early 2025 to promote global financial inclusion and ensure that anti-money laundering (AML), counter-terrorist financing (CFT), and countering the financing of proliferation (CPF) measures are applied proportionately and based on risk assessments.

Risk-based Approach for Financial Inclusion

According to FATF representatives, integrating more people into formal financial systems is crucial in fighting financial crime. This approach supports smaller black markets where criminals conduct their operations, making it harder for them to hide illicit activities.

FATF acknowledges that financial exclusion disproportionately affects individuals from disadvantaged and vulnerable communities, often due to high costs or a lack of formal identification documents.

Public feedback was sought, gathering over 100 responses from various sectors including civil society, academia, the public, and private sectors. The revised guidelines incorporate case studies from around the globe, focusing on underserved groups such as low-income individuals, rural populations, and those in fragile contexts with limited identity verification means.

By adopting a risk-based approach, countries can tailor financial services to meet specific needs while implementing measures for higher-risk scenarios. This method ensures that appropriate financial solutions are provided to those who require them most.

Implementation Examples

The revised guidance outlines examples of successful implementations by supervisors, policymakers, and associations in various countries like Sweden, Singapore, and the Netherlands.