UKGC recommends FATF guidance on risk-based oversight

Created in 2001 by G7 The FATF has a function of combating financial crime and anti-terrorism activities. the finance unit responsible for promoting intergovernmental cooperation in the fight against the growing threat of international money laundering.

The FATF has published updated guidance on ' Risk based supervision ‘ - emphasizing that companies operating in high-risk sectors, in their efforts to curb financial crime, “must go beyond the tick-box approach”.

The Task Force recommends that employees in high-risk sectors such as gambling, financial services, accounting, real estate and virtual asset traders develop a “culture of oversight” at all levels of their business.

Corporate supervisors should be fully trained in handling the full range of AML risks associated with their industry and focus on where resources are needed.

In addition, supervisors need to be able to work with regulators and broader financial services stakeholders to develop an in-depth understanding of the risks their businesses face.

The FATF Guidance is divided into three parts, which are:) high-level guidance on risk-based oversight, ii) strategies to address common oversight concerns, and iii) providing effective jurisdictional approaches to monitoring high-risk industry transactions.

“A risk-based approach will enable supervisors to identify and prevent financial flows that fuel crime and terrorism. more effective, ”the FATF said in a statement.

"This is very important because it is better to detect and prevent money laundering and terrorist financing than to prosecute them after a crime has been committed."