The Financial Action Task Force (FATF) has launched a new tool kit to help countries better understand and address the risks of money laundering. This toolkit is designed to support Governments in building a stronger, risk-based approach to fighting financial crimes.
Each year, criminal activities generate trillions of dollars in illegal proceeds. When laundered, this money enables criminals to continue harmful activities such as corruption, drug trafficking, and fraud. The FATF’s new toolkit offers practical resources to help countries identify their highest risks and take targeted action to prevent financial crime.
The tool kit focuses on four key risk areas that are often difficult to assess, corruption, virtual assets such as cryptocurrencies, companies and legal structures used to hide money, informal or cash-based economies.
These areas are frequently exploited by criminals to move and conceal illicit funds. The tool kit includes global examples to show how different countries are addressing these challenges.
It also highlights how rapid technological advancements and international fund transfers make it harder to trace illegal money. Countries are encouraged to combine international trends with national data to improve their understanding of financial crime risks.
FATF President Elisa de Anda Madrazo stated, “To fight financial crime, we must first understand the risks we face. A risk-based approach allows us to focus efforts where they are most needed and prevent crime from being pushed out of sight.”
The toolkit is designed to be used for national, sector-specific, or thematic risk assessments. It offers guidance, real-world case studies, and tools to identify data gaps, helping Governments develop more effective anti-money laundering strategies.
The toolkit is now available to all member countries within the FATF Global Network.