https://www.crowdfundinsider.com/2025/08/249055-fatf-launches-money-laundering-national-risk-assessment-resource-to-address-financial-crime/

The Financial Action Task Force (FATF) unveiled a Money Laundering National Risk Assessment (NRA) resource, designed to enable countries to strengthen their risk-based strategies in combating financial crime.

This resource marks a step forward in the global effort to safeguard financial systems from money laundering, terrorist financing, and other illicit activities.

The resource provides practical guidance, good practices, and adaptable tools tailored to the unique risks and contexts of individual nations, reinforcing the FATF’s commitment to fostering smarter, more effective anti-money laundering (AML) frameworks worldwide.

The NRA resource addresses critical areas of financial crime vulnerability, offering actionable insights to help countries identify, assess, and mitigate risks.

It covers a spectrum of high-risk domains, including corruption, virtual assets and virtual asset service providers (VASPs), legal persons and arrangements, and the informal economy.

Additionally, it tackles cross-country money laundering threats and vulnerabilities, providing a comprehensive approach to understanding the complex, interconnected nature of financial crime in today’s globalized economy.

By equipping countries with these tools, the FATF aims to enhance their ability to prioritize resources effectively and respond proportionately to emerging threats.

A key feature of the resource is its inclusion of a package of NRA tools developed in collaboration with prominent international organizations, such as the World Bank, the International Monetary Fund (IMF), and the Council of Europe.

These tools are designed to be flexible, allowing countries to adapt them to their specific regulatory environments, economic structures, and risk profiles.

Whether addressing the challenges posed by decentralized virtual currencies or the opacity of legal entities used to obscure illicit funds, the toolkit provides practical examples and methodologies to guide jurisdictions in conducting thorough risk assessments.

FATF President Elisa de Anda Madrazo emphasized the critical importance of understanding financial crime risks as the foundation of a risk-based approach, which lies at the core of the FATF’s mission.

Madrazo stated:

“To effectively fight financial crime, we need to have a clear understanding of the risks we face. This is the essential first step to taking a risk-based approach which is the centerpiece of the FATF’s approach to safeguarding against crime.”

She highlighted that a risk-based approach enables countries to allocate resources strategically, focusing efforts on the areas where financial crime poses the greatest harm to communities.

This method also ensures a proportionate response, preventing legitimate activities from being driven underground into unmonitored spaces where they are harder to track.

The toolkit’s launch comes at a pivotal moment, as financial crime continues to evolve with the rapid advancement of technology and globalization.

Virtual assets, such as cryptocurrencies, have introduced new challenges for regulators, with VASPs often serving as gateways for illicit transactions.

Similarly, the informal economy and complex legal structures remain persistent vulnerabilities exploited by money launderers.

By addressing these issues head-on, the toolkit empowers countries to stay ahead of emerging threats and align their AML frameworks with international best practices.

The FATF’s initiative has been widely welcomed by the global financial community.

By providing a standardized yet adaptable framework, the resource aims to foster greater international cooperation and consistency in combating money laundering.

It also supports countries in meeting FATF standards, which are critical for maintaining access to global financial markets and avoiding inclusion on the FATF’s “grey list” of jurisdictions with strategic AML deficiencies.

Madrazo urged stakeholders worldwide to leverage the toolkit to enhance their understanding of money laundering risks.

She remarked:

“I encourage everyone to make use of this new toolkit to improve our collective understanding of money laundering risks.”

As countries begin to implement these tools, the global fight against financial crime is expected to become more targeted, efficient, and collaborative, ensuring safer financial systems for communities everywhere.