FATF: COVID-19-related Money Laundering and Terrorist Financing Risks and Policy Responses
The FATF has, on 04 May 2020, released a paper entitled ‘COVID-19-related Money Laundering and Terrorist Financing Risks and Policy Responses’.
The paper is a response to the impact of the COVID-19 crisis on global Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) efforts and the application of the FATF Standards in this particular context, which has led to global challenges, human suffering, and economic disruption. The paper identifies challenges, good practices, and policy responses to new ML and TF threats and vulnerabilities arising from the COVID-19 crisis. The focus of this paper relates to three broad themes:
- New threats and vulnerabilities stemming from COVID-19-related crime and impacts on ML and TF risks;
- Current impact on AML/CFT efforts by governments and the private sector due to COVID-19;
- Suggested AML/CFT policy responses to support the swift and effective implementation of measures to respond to COVID-19, while managing new risks and vulnerabilities identified, including charitable activity and economic and fiscal stimulus and financial rescue packages for firms and individuals.