FATF Issues Guidance for AML/CFT Digitization of FIUs

  • Richard Marley
  • October 28, 2021
  • 2 minutes read
  • 376

FATF published a report in collaboration with the Egmont group discussing why and how FIUs should adopt digital tools for effective AML/CFT processes. 

In order to assist Financial Intelligence Units (FIUs), Financial Action Task Force (FATF) in association with the Egmont group issued a report on October 27, 2021, on “Digital Transformation on AML/CFT For Operational Agencies”. 

In addition to why FIUs must digitize AML/CFT purposes for higher effectiveness, the report addresses how they can benefit from digital transformation.  

The FATF analysis includes practical and operational challenges “throughout different stages of and processes in daily operations of operational agencies”. 

The global financial watchdog has also provided insights on the key drivers, strategic considerations, opportunities, and benefits of adopting digital initiatives. 

The key drivers include “the need to streamline the repetitive manual process, prioritize STRs of higher investigative value, maximize the value of analysts’ tasks, and lay down the essential precondition for the implementation of a dynamic risk-based approach in FIU workflows”

The report also highlights the opportunities for FIUs associated with digital transformation such as 

  • Increased data utility and data handling
  • Extended analytical capacity 
  • More conventional management of AML/CFT risks 
  • Secured and improved STR management    

Lastly, FATF adds, “Digitalisation and digital transformation have the potential to bring immense opportunities to FIU workflows and there are practical needs for FIUs to harness technology to solve some of their day-to-day challenges”

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