Overview international best practices on customer due diligence and related anti-money laundering measures

What is it about?

The anti-money laundering frameworks of many countries were generally influenced by the international best practices money laundering that were first established in 1988 through the Basel Committee on Banking Supervision (BCBS). The general belief is that these international best practices are applicable in all jurisdictions although most countries are still affected by money laundering. The international best practices are universal measures that were developed as a yardstick to control and curb money laundering globally. Nonetheless, international best practices for money laundering are not tailor-made for specific jurisdictions and/or countries. Therefore, it remains the duty of respective jurisdictions and/or countries to develop their own context-sensitive anti-money laundering measures in accordance with the international best practices. An overview of the anti-money laundering international best practices that were developed and adopted by several countries are analysed in this article. These include customer due diligence measures established by the BCBS, the Financial Action Task Force (FATF) standards as well as the ongoing monitoring and the risk sensitive approach that were implemented to curb money laundering globally.

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