04 February 2014

BCBS finalises risk management guidelines on AML and terrorist financing

Harvey Knight
Partner | UK

The Basel Committee on Banking Supervision (BCBS) has issued new risk management guidelines (guidelines) relating to anti-money laundering (AML) and terrorist financing, describing how banks should include the management of risks related to money laundering and financing of terrorism within their overall risk management framework.

The guidelines apply to all banks, although some requirements may need adaptation for use by small or specialised institutions. They specifically target banks, banking groups and banking supervisors. The BCBS recommends that the guidelines are read in conjunction with other standards it has produced that promote supervision of banking groups on a consolidated level (such as its core principles for effective banking supervision. The 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. In some instances the guidelines cross refer to the FATF standards to help banks comply with national requirements based on the implementation of those standards.

Category: Article