The Financial Action Task Force has published for consultation draft Risk-Based Approach Guidance for the securities sector. The FATF is developing the Guidance to assist countries, regulators, Financial Intelligence Units and participants in the securities sector to adopt a risk-based approach to anti-money laundering and countering financing of terrorism. The draft Guidance aims to assist in the risk-based design and implementation of applicable AML/CFT measures by providing general guidelines and examples of current practices and facilitate the effective implementation and supervision of national AML/CFT measures by focusing on risks and on mitigation measures. The FATF is also hoping that the draft Guidance will aid the development of a common understanding of what the risk-based approach to AML/CFT entails in the context of the securities sector. The Guidance will not be binding once it is finalized. The draft Guidance should be read in conjunction with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation and the 2009 Report on Money Laundering and Terrorist Financing.
The draft Guidance sets out the key principles involved in applying a risk-based approach to AML and CFT. There are separate sections providing specific guidance to securities providers and intermediaries and to securities supervisors on the effective implementation of a risk-based approach. The annexes provide examples of supervisory practices that have been adopted and examples of suspicious activity indicators in relation to securities.
The FATF is seeking feedback on the draft Guidance. In particular, the FATF would like to know if the guidance provides sufficient clarity and whether any additional guidance could be incorporated. The FATF would also welcome further examples of adopted supervisory practices and examples of suspicious activity indicators.
Responses to the consultation should be provided by August 17, 2018, including by providing a red line of the draft Guidance. The FATF intend to adopt the final Guidance at its October 2018 plenary meeting.
View the consultation page.
