New international anti-money laundering standards aim to make it easier for everyone to participate in the financial services system while at the same tightening oversight for potential bad actors.

The Financial Action Task Force has released updated Guidance on Financial Inclusion and Anti-Money Laundering and Terrorist Financing Measures, reflecting changes made to Recommendation 1 of its global standards. These changes place a stronger emphasis on proportional, risk-based approaches that do not go overboard.

The new FATF guidance, shaped by more than 100 public responses, includes real-world case studies and aims to help low-income, rural and underserved people access formal financial services.

The updated guidance stresses that financial inclusion and AML efforts are not at odds.

“Bringing more people into the formal financial sector is crucial to our fight against financial crime,” said Elisa de Anda Madrazo, the president of FATF.

“But it also addresses a clear injustice … Financial exclusion largely affects people in disadvantaged and vulnerable communities.”

For insurers, banks and digital finance providers, the revised standards mean a call to tailor their due diligence and monitoring without excluding low-risk clients. Supervisors must assess whether their institutions are overcomplying because they do not completely understand the risk.

The FATF's shift from requiring “commensurate” to “proportionate” measures aims to clarify how institutions should scale their compliance efforts. Low-risk scenarios may call for simplified AML checks, while higher-risk activities will still trigger enhanced safeguards.

The guidance also offers global case studies, such as Singapore’s “limited purpose” banking for higher-risk individuals.