FATF's risk-based approach: has the pendulum swung too far?

Louise de Koker, Doron Goldbarsht

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

3 Citations (Scopus)

Abstract

The introduction of the mandatory risk-based approach in the FATF standards in 2012 was revolutionary. It promised to free institutions from a general rule-based approach to empower them to manage their risks individually. This approach has however not delivered as much benefit as was promised. It burdens institutions, especially smaller institutions, which may not have sufficient resources to undertake appropriate financial crime risk assessments. It also leads to perverse unintended consequences that regulators are unable to effectively prevent. This chapter considers some of the questions regarding the risk-based approach in practice and concludes with suggestions for further research.
Original languageEnglish
Title of host publicationFinancial crime and the law
Subtitle of host publicationidentifying and mitigating risks
EditorsDoron Goldbarsht, Louis de Koker
Place of PublicationCham, Switzerland
PublisherSpringer, Springer Nature
Pages247–262
Number of pages16
ISBN (Electronic)9783031595431
ISBN (Print)9783031595424
Publication statusPublished - 2024

Publication series

NameIus Gentium: Comparative Perspectives on Law and Justice (IUSGENT)
PublisherSpringer
Volume155
ISSN (Print)1534-6781
ISSN (Electronic)2214-9902

Keywords

  • Financial Action Task Force
  • Money laundering
  • Proliferation financing
  • Risk-based approach
  • Terrorist financing

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