FATF publishes risk-based guidance for the life insurance and securities sectors

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.