➡️ The guidance emphasises a risk-based approach, encouraging jurisdictions and firms to design AML/CFT frameworks that support access to formal financial services for underserved groups, such as low-income, rural, or undocumented individuals, without compromising vigilance.
➡️ It outlines how simplified customer due diligence can be applied in low-risk situations, in line with the FATF’s revised Recommendation 1 prioritising proportionate measures.
➡️ Drawing on global best practices and case studies, the paper provides practical tools to help regulators and financial institutions strike the balance between preventing illicit finance and promoting inclusion, ensuring vulnerable populations are not excluded from the financial system while maintaining its integrity.
✅ Firms should review their customer risk assessment methodologies to ensure they integrate the updated guidance, taking an appropriate risk-based yet inclusive approach to the provision of financial services.