FATF Guidance on AML/CFT measures and financial inclusion, with a supplement on customer due diligence


November 3 2017

Financial inclusion has always been important for the FATF. Without access to the formal financial system, unserved or underserved customers will resort to cash and unregulated channels, which limits transparency and increases the risk of crime and money laundering.

The FATF recognises that applying an overly cautious approach to anti-money laundering and countering the financing of terrorism (AML/CFT) safeguards can have the unintended consequence of excluding legitimate businesses and consumers from the formal financial system. In 2013, the FATF published the Guidance on AML/CFT Measures and Financial Inclusion, which provided support for designing AML/CFT measures that meet the goal of financial inclusion, without compromising their effectiveness in combating crime. The guidance explained how to apply the risk-based approach, reinforced in the 2012 Recommendations, in a financial inclusion context.