FATF Issues Warning About Risks in Financial System Amid COVID-19
Argentina
8 mayo 2020

The Financial Action Task Force (FATF) has published a report warning of the risks of money laundering and cybercrime in the context of COVID-19 and recommends countries take a number of measures to address this situation. Access the document by clicking here.

The FATF proposes a series of responses designed to tackle the risks to the security of the financial system. These include strengthening communications with the private sector and supporting electronic and digital payment options, implementing a comprehensive risk-based approach to customer due diligence, and promoting national coordination to assess the impact of COVID-19 on systems to prevent money laundering and terrorist financing.

The report, based on recent experiences in member countries, maintains that measures to contain COVID-19 are having a negative impact on the economy and criminal behaviour, with criminals seeking other ways to carry out illegal activity.

Changes in the provision of financial services as a result of the emergency and the increase in remote operations may make it easier for criminals to conceal their identity in order to attempt to launder money or finance terrorism.

According to the document, there have been cases where some supervisory authorities have relaxed certain elements required to check customer identity during confinement periods: a situation which they consider to be a risk to the system. The report also highlights the dangers of cyber-attacks and money laundering in a context where remote operations and informal financial services have taken on greater importance among the population. 

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