Which activity associated with new or developing technologies does the Financial Action Task Force recommend financial institutions pay special attention to?

The correct answer is D. Non-face-to-face business relationships or transactions. The Financial Action Task Force (FATF) recommends that financial institutions pay special attention to non-face-to-face business relationships or transactions when dealing with new or developing technologies. These include digital channels, online platforms, and virtual…

New Developments in AML/CFT

Question

Options

AHigh volumes of cash transactions
BComplex or unusually large transactions
CFinancial intermediaries performing transactions for customers
DNon-face-to-face business relationships or transactions

How the community answered

(55 responses)

A
7% (4)
B
4% (2)
C
18% (10)
D
71% (39)

Explanation

The Financial Action Task Force (FATF) recommends that financial institutions pay special attention to non-face-to-face business relationships or transactions when dealing with new or developing technologies. These include digital channels, online platforms, and virtual interactions. The increased use of technology for remote transactions poses unique risks related to customer identification, authentication, and due diligence. Financial institutions must implement robust controls to mitigate these risks and ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) requirements.

Topics

#FATF recommendations#non-face-to-face transactions#digital technologies#AML risks

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