Guidance for a risk-based approach for legal professionals
The FATF risk-based approach (RBA) Guidance aims to support the implementation of the RBA by legal professionals, taking into account national ML/TF risk assessments and AML/CFT legal and regulatory frameworks. The Guidance highlights that legal professionals should design their policies and procedures so that the level of initial and ongoing CDD measures addresses the ML/TF risks to which they are exposed
The Guidance acknowledges that legal professionals operate within a wide range of business structures - from sole practitioners to large, multi-national firms and provide a variety of services in different jurisdictions. Given the diversity in scale, activities and risk profile one-size-fits-all approach is not appropriate.
The Guidance has a section for supervisors of legal professionals and highlights the role of self-regulatory bodies in supervising and monitoring. It explains the RBA to supervision as well as supervision of the RBA by providing specific guidance on licensing or registration requirements, on-site and off-site supervision, enforcement, training and information-exchange between the public and private sector.