Which activity associated with new or developing technologies does the FATF recommend FIs pay special attention to?
Click on the arrows to vote for the correct answer
A. B. C. D.C
The Financial Action Task Force (FATF) is an intergovernmental organization that sets global standards for anti-money laundering (AML) and counter-terrorist financing (CTF) measures. The FATF Recommendations provide a comprehensive framework of measures to combat money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction.
One of the areas the FATF recommends financial institutions (FIs) pay special attention to is new or developing technologies. As technology evolves, so do the risks associated with its use, including the potential for money laundering and terrorist financing. Therefore, it is important for FIs to be aware of these risks and take steps to mitigate them.
The correct answer to the question is D. Non-face to face business relationships or transactions. Non-face to face transactions refer to any transaction or business relationship conducted without physical presence or interaction between parties. This includes transactions conducted through electronic channels, such as the internet, mobile devices, or other forms of digital communication.
Non-face to face transactions can create additional risks for FIs due to the anonymity they provide, making it easier for criminals to conceal their identities and activities. Therefore, the FATF recommends that FIs pay special attention to non-face to face business relationships or transactions and implement appropriate AML/CFT measures to mitigate the associated risks.
Option A, financial intermediaries performing transactions for customers, is a generic answer and does not specifically relate to new or developing technologies. Option B, high volumes of cash transactions, is a risk factor for money laundering, but not specifically related to new or developing technologies. Option C, complex or unusually large transactions, is a risk factor for money laundering and could be associated with new or developing technologies, but it is not specifically mentioned in the FATF Recommendations as an area of special attention for FIs.