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The Guidelines on anti-money laundering and countering the financing of terrorism (AML/CFT) provide credit and financial institutions with the tools they need to make informed, risk-based decisions on the effective management of individual business relationships and occasional transactions for AML/CFT purposes.
They provide guidance on the factors credit and financial institutions should consider when assessing the ML/TF risk associated with a business relationship or occasional transaction. In addition, they set out how credit and financial institutions can adjust the extent of their customer due diligence measures to mitigate the ML/TF risk they have identified.
Competent authorities will use these Guidelines when assessing whether the ML/TF risk assessment and management systems and controls of EU credit and financial institutions are adequate. These Guidelines are essential to the European Union's fight against ML/TF.
They set clear, regulatory expectations of the way credit and financial institutions should discharge important AML/CFT obligations and pave the way for a more effective and proportionate European AML/CFT regime that is consistent with international best practice and guidance.