FATF has published Guidance to a risk-based approach (RBA) to AML and CFT in the life insurance and securities sectors.
The Guidance:
- outlines the key elements involved in applying a RBA to AML/ CFT associated with life insurance
- sets out the types of securities providers that may be involved in a securities transaction and their business models
- provides general guidelines and examples of current practice for assistance in designing and implementing such a RBA
- highlights the importance of ongoing transaction monitoring in the securities transaction context
- aims to support the development of a common understanding of what a RBA to AML/ CFT entails, including the importance of proper training for supervisory staff.