The Financial Action Task Force (FATF) has released a major update to its international guidance on anti–money laundering (AML), counter-terrorism financing (CFT), and financial inclusion. The revised framework encourages governments and financial institutions to adopt a more balanced, risk-based approach that promotes financial access without compromising security.
A central change is the revised interpretation of FATF Recommendation 1. The wording now highlights the need for “proportionality” in AML/CFT measures. This means that financial institutions can apply simplified due diligence processes when dealing with lower-risk customers, helping extend services to underserved populations without applying unnecessarily strict controls.
Another important update clarifies that onboarding customers through digital or non-face-to-face channels should not automatically trigger enhanced due diligence. FATF now emphasizes that when reliable digital identity systems are used, remote onboarding can be just as secure as traditional in-person methods.
These changes are especially relevant for the 1.4 billion people globally who still lack access to basic financial services. The new guidance promotes inclusive practices, urging countries to enable low-risk individuals—such as migrants, informal workers, or people in rural areas—to access banking and payment services more easily.
FATF President Elisa de Anda Madrazo stated that financial inclusion is not only a development goal but also a powerful tool in the fight against financial crime. By bringing more people into the formal financial system, governments reduce the space in which criminal and terrorist groups can operate.
Examples from several countries demonstrate how this updated guidance can be applied. In Sweden, asylum seekers can open basic accounts through digital identity verification systems linked to the migration authority. Dutch banks have adopted tiered risk models that assign customers to different levels of scrutiny based on their profile. In Singapore, regulators allow limited-purpose accounts for high-risk individuals while monitoring transactions closely.
The FATF also places more responsibility on supervisors to prevent the misuse of AML rules. Regulators are now expected to ensure that financial institutions are not excluding entire categories of customers due to an overly cautious interpretation of risk, a practice known as “de-risking.”
To refine its approach further, FATF invited public feedback on the updated guidance. More than 140 stakeholders—including banks, digital finance providers, academics, and advocacy groups—submitted case studies and suggestions. The consultation focused on the role of digital identity, non-face-to-face onboarding, and strategies to reach vulnerable populations in high-risk areas or conflict zones.
This new guidance sends a strong message: effective AML/CFT systems can coexist with policies that support broader access to financial services. By adopting proportionate, flexible compliance measures, countries and financial institutions can better serve their populations while upholding global financial integrity.
FATF’s updated approach reflects a growing global consensus that security and inclusion are not opposing goals, but mutually reinforcing ones.
