FATF Forum Focuses on Strengthening the Implementation of Risk‑Based Approach

Over 100 global financial crime professionals attended, including financial supervisors, financial intelligence units (FIUs), law enforcement agencies (LEAs), and policymakers.

Key insights include:

➡️ Effectiveness Over Formal Compliance: While the focus on the risk-based approach is working, greater emphasis is needed on the effectiveness in reducing money laundering and terrorist financing (ML/TF) harms;

➡️ Better Public–Private Alignment: Authorities and the private sector should align more closely on risk-based resource allocation to better target high-risk activity and reduce friction for legitimate customers;

➡️ Trust as a Foundation: Effective risk-based supervision depends on trust and constructive engagement between supervisors and firms;

➡️ Moving Beyond Zero-Failure: Participants highlighted the need to shift away from a “zero-failure” culture and move towards prioritising higher-risk threats and reducing low-value compliance activity; and

➡️ Impact-Focused Supervision: Supervisory attention should concentrate on measures that deliver the greatest impact in preventing and detecting financial crime.

✅ Firms should ensure AML frameworks are risk-led, and demonstrably effective and aligned with supervisory expectations and the best practice outlined by the FATF.