Risk Based Approach Guidance for Businesses Issued by FATF

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The international Finance Action Task Force has issued draft guidance documents setting out a risk-based approach to money laundering measures in the life insurance and financial securities sectors.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.