On 23 February 2016, the Financial Action Task Force (FATF) published an updated version of its guidance on a risk-based approach for money or value transfer services (MVTS).
FATF originally published guidance for money services businesses in July 2009 – The guidance has been updated to bring it in line with the 2012 FATF recommendations.
The non-binding guidance is intended to assist countries and their competent authorities, as well as practitioners in the MVTS sector and in the banking sector that have or are considering MVTS providers as customers, to apply the risk-based approach associated to MVTS. The risk-based approach requires that measures to combat money laundering and terrorist financing are commensurate with the risks.
Although the guidance is applicable to all of the MVTS sector (that is, both banking and non-banking institutions offering MVTS), it is primarily intended for non-banking MVTS providers. Section I of the guidance sets out the key elements of the risk-based approach. Sections II to IV provide specific guidance to MVTS providers, to supervisors of MVTS providers on the effective implementation of a risk-based approach, and to banks that have MVTS providers as customers and supervisors of banks that have MVTS providers as customers.
The FATF adopted the updated guidance for MVTS providers at its February 2016 plenary meeting
The FATF also intends to review and update its other risk-based guidance papers to be consistent with the 2012 recommendations.
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