David Lewis, executive secretary of FATF, has spoken on the importance of stamping out a tick box culture in AML, and ensuring that industry and supervisors treat financial crime prevention as seriously as they should. He stressed that despite increasingly high volumes of SARs, only a small fraction are helpful and confiscation rates are only around 1% of the proceeds of crime estimated to be available for money laundering.
Supervisors, he said, have to better understand the risks and have the capacity to act accordingly, as well as incentivising good behaviour. Everyone needs to appreciate that a risk-based approach means that there will be some failure, and that it is important to understand what the right outcomes look like.
FATF evaluations aim to help with all this and ensure all standards are implemented properly and effectively.