The Financial Action Task Force (FATF) recently issued a public consultation with proposed changes intended to better promote financial inclusion.  Comments are due to FATF by December 6, 2024. The proposed revisions span several different FAFT Recommendations and Interpretive Notes, including Recommendation 1, 10 and 15. The revisions include an increased focus on proportionality and more streamlined measures regarding the risk-based approach. The new revisions also address non-face-to-face customer-identification and transactions.

Anti-money laundering requirements have long created unintended consequences related to financial inclusion. The proposed revisions are intended to give individual countries, national regulators and financial institutions better assurance when using a simplified approach to support financial inclusion. Credit unions often face challenges when trying to serve their community while meeting compliance requirements. Changes to these areas could further support credit unions’ financial inclusion mission.

Click here to read the full consultation.