The correlation of Financial Action Task Force recommendations: the perception of compliance officers concerning the deployment of third parties and Fintech for customer due diligence

Nasir Sultan, Norazida Mohamed, David Chisunga and Akhbar Satar

Journal of Money Laundering Control, 2025, vol. 28, issue 2, 292-314

Abstract: Purpose - This study aims to explore the challenges financial institutions face in deploying third parties and financial technologies to perform customer due diligence. Design/methodology/approach - This study applied a qualitative technique and interviewed 25 compliance officers from different financial institutes and their regulators. Findings - This study found that the third-party recommendation of the Financial Action Task Force is restrictive, contradictory, time-consuming and seriously lacks standardisation. Furthermore, this recommendation restricts the use of modern Fintechs. This recommendation has posed significant challenges for the adoption of Fintechs, international banking/onboarding, digital onboarding and financial inclusion. Practical implications - Thus, revisiting the Financial Action Task Force Recommendations 17 and 15 in correlation with Recommendation 10 is suggested. Originality/value - The Recommendation 17 is rarely discussed in details, especially in developing courtiers’ context.

Keywords: Anti-money laundering; Customer due diligence; Fintech (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jmlcpp:jmlc-08-2024-0135

DOI: 10.1108/JMLC-08-2024-0135

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