The Financial Action Task Force (FATF) has published a report that identifies new technologies that can improve the promptness and efficiency of AML/CFT measures. Such technologies include solutions that help both perform AML/CFT tasks and ensure compliance with AML/CFT regulations. These technologies can aid financial institutions and supervisors in performing risk assessments in a more prompt and comprehensive manner. They can also help engage more people in the regulated financial system and make AML/CFT measures more effective.
The FATF report discusses the environment and policies that are necessary to use new AML/CFT technologies successfully. It also highlights possible hindrances to the utilization of such technological solutions. The FATF has suggested a few actions for government authorities to develop and use new AML/CFT technologies more efficiently.
Governments as well as the private sector must create a conducive environment to help enable technological innovations in the field of AML/CFT. It is also important that authorities ensure privacy and data protection while using new technologies. The FATF further suggests that authorities should promote the development of technologies that promote cooperation, engage more people and improve financial inclusion. Moreover, policies and regulations must be in place to ensure that all AML/CFT technological innovations take place in a technology-neutral, risk-based and results-based approach.
Source: FATF