Risk Based Approach Guidance for Businesses Issued by FATF
The international Finance Action Task Force has issued draft guidance documents setting out a risk-based approach to money laundering measures in the life insurance and financial securities sectors.
The risk-based approach is central to the effective implementation of the FATF Recommendations. A risk-based approach means that the following entities can recognise, measure, and understand the money laundering risks that they are exposed to:
- Countries at governmental level.
- Competent authorities.
- Banks & financial institutions.