Regulatory Alerts2025-03-31
Discussion Paper on Issues and Practices for Dialogue on Validation of Effectiveness of AML/CFT Frameworks
The Financial Services Agency issued this discussion paper to guide financial institutions on validating the effectiveness of their anti-money laundering and counter-terrorist financing frameworks. It establishes a structured approach for institutions to continuously identify, assess, and mitigate money laundering and terrorist financing risks through regular internal validation and dialogue with regulators. The document outlines specific expectations for board oversight, risk assessment methodologies, and the implementation of mitigation measures to ensure frameworks remain responsive to evolving threats.
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