Financial Action Task Force Reports on Financial Crime During COVID-19

The Financial Action Task Force has published a report on financial crime (including money laundering and terrorism financing activities) during COVID-19, identifying challenges, good practices and policy responses to the emerging threats and vulnerabilities.

The increased threats identified include fraud from criminals attempting to profit from the pandemic, a spike in cyber crime, particularly phishing emails and spam campaigns and a corresponding impact on other predicate crimes including human trafficking, exploitation of workers, online child exploitation and organized property crime. In conjunction, confinement and social distancing measures designed to combat COVID-19 are impacting government and private sector capacity to implement AML and CTF obligations.

The FATF's proposed responses to these challenges include: (i) domestic coordination by regulators to engage with the private sector and develop solutions to the emerging risks; (ii) strengthened communications by regulators with the private sector on the application of AML/CTF measures, which may include both financial and non-financial market participants; (iii) encouragement of a risk-based approach to customer due diligence and responsible digital identity solutions for onboarding and conducting transactions; (iv) support for electronic and digital payment options; (v) improved understanding of new risks and adaptation of existing operational responses to deal with them; and (vi) continuation of cross-border cooperation and increased communication where necessary.

The report also includes an Annex of statements or guidance so far issued by FATF and FSRB members in response to the challenges posed by COVID-19.

View the FATF's report on AML during COVID-19.

Details of other regulatory responses to COVID-19 are available on our COVID-19 Research Center.

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