FATF publishes new guidance on financial inclusion and AML/CFT measures

The Financial Action Task Force (FATF) has released updated guidance to help countries and financial institutions better balance anti-money laundering and countering the financing of terrorism (AML/CFT) with efforts to expand financial inclusion.

The guidance, aligned with the February 2025 updates to Recommendation 1, promotes a proportionate, risk-based approach. Lower-risk individuals and organisations should face simplified due diligence, while higher-risk entities remain subject to enhanced scrutiny. The aim is to ensure regulatory controls do not unintentionally exclude those with little or no access to formal financial services.

FATF President Elisa de Anda Madrazo stated:

“Financial exclusion largely affects disadvantaged and vulnerable communities… In most cases, these individuals are not higher risk.”

Supporting financial access

The document includes examples of good practice:

Sweden allows asylum seekers to open accounts using identity confirmation from migration authorities.

Singapore offers “limited purpose” accounts to higher-risk individuals lacking standard ID.

The Netherlands uses tiered due diligence based on risk profiles.

Protecting charities

The guidance also addresses concerns over derisking and the impact on non-profit organisations, stressing that counter-terrorism controls should not unduly restrict legitimate charities. Revisions to Recommendation 8 and its best-practice paper reinforce this message.

Next steps

The FATF has also revised its mutual evaluation methodology to reflect the new approach. While the guidance does not impose new obligations, it urges regulators and the private sector to ensure compliance measures are flexible and proportionate, enabling broader access to safe, regulated financial systems.

Source: FATF