The Financial Action Task Force (FATF) announced on 25 February 2025 that it has updated its global Standards to better promote financial inclusion, following approval at the February 2025 FATF Plenary. In addition, the FATF has opened a public consultation on its revised guidance to further embed a risk-based approach that balances anti-money laundering (AML) and combating the financing of terrorism (CFT) requirements with greater access to financial services.
Key Amendments to FATF Standards
The revisions focus on enhancing proportionality within AML/CFT frameworks, with changes to Recommendation 1 and its Interpretive Note, as well as amendments to Interpretive Notes to Recommendations 10 and 15 and related Glossary terms.
Key changes include:
- Replacing “commensurate” with “proportionate” to clarify that measures should appropriately correspond to the identified level of risk and effectively mitigate it.
- Mandating countries to enable and encourage simplified measures for lower-risk scenarios, thereby facilitating broader access to financial services.
- Requiring supervisors to consider institutions’ risk mitigation efforts, reducing the risk of overcompliance based on incomplete understanding of risks.
- Clarifying the treatment of non-face-to-face transactions, recognizing that such transactions are not automatically higher-risk if effective digital identity and risk mitigation measures are in place.
- Strengthening guidance on simplified measures and exemptions in lower- and low-risk scenarios.
These changes are particularly significant given that an estimated 1.4 billion people worldwide remain unbanked. The FATF’s updated approach aims to create a more enabling environment for financial institutions to adopt simplified measures while maintaining effective safeguards against illicit finance.
The amendments were informed by an extensive public consultation that attracted over 140 submissions from banks, payment providers, non-profit organisations, insurers, academics, and other stakeholders.
Public Consultation on Updated Financial Inclusion Guidance
To support implementation of these updated Standards, the FATF has also launched a consultation on revised Guidance on AML/CFT measures and financial inclusion. The new Guidance aims to provide policymakers and regulators with practical examples and strategies for balancing AML/CFT obligations with the goal of expanding access to financial services.
The FATF particularly welcomes case studies on:
- Tailored measures to enable financial services in higher-risk environments, such as conflict zones.
- Mitigating risks associated with non-face-to-face transactions, including the use of artificial intelligence technologies.
Stakeholders are invited to submit their feedback by Friday, 4 April 2025, 18h00 CET. Contributions may be published unless confidentiality is explicitly requested.
Global Implications
FATF President Elisa de Anda Madrazo emphasized that these changes are part of a broader effort to ensure that the FATF framework continues to evolve in response to technological advances and financial inclusion priorities, while maintaining robust protections against financial crime.
Financial institutions, regulators, and other stakeholders are encouraged to review the updated FATF Recommendations and participate in the consultation process to contribute to the future shape of AML/CFT and financial inclusion standards.
