Risk management guidelines related to anti-money laundering and terrorist financing issued by the Basel Committee
15 January 2014
The Basel Committee on Banking Supervision has today issued a set of guidelines to describe how banks should include the management of risks related to money laundering and financing of terrorism within their overall risk management framework.
Prudent management of these risks together with effective supervisory oversight is critical in protecting the safety and soundness of banks as well as the integrity of the financial system. Failure to manage these vulnerabilities exposes banks to serious reputational, operational, compliance and other risks.
These guidelines are consistent with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation issued by the Financial Action Task Force (FATF) in 2012 and supplement their goals and objectives. The risk management guidelines published today include cross-references to FATF standards to help banks comply with national requirements based on those standards.
An earlier version of the guidelines published today was issued for consultation in June 2013. The Committee thanks those who provided feedback and comments, which were taken into account in revising and finalising the guidelines.