Global bank regulators issued new guidelines today that aim to ensure banks are adequately managing risks related to money laundering and terrorist financing.
The Basel Committee on Banking Supervision issued a set of guidelines today that sets out how banks should include risks related to money laundering and the financing of terrorism within their overall risk management framework.
“Prudent management of these risks, together with effective supervisory oversight, is critical in protecting the safety and soundness of banks as well as the integrity of the financial system,” the committee says. “Failure to manage these risks can expose banks to serious reputational, operational, compliance and other risks.”
The guidelines, which the Basel Committee says are consistent with international standards established by the Financial Action Task Force (FATF), replaces previously-issued Basel Committee guidance in this area. A draft version was issued for consultation in June 2013.