33 lines
1.5 KiB
Org Mode
33 lines
1.5 KiB
Org Mode
:PROPERTIES:
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:ID: auto-fatf
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:CREATED: [2026-05-23 Sat]
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:END:
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#+title: risk-weight mapping correctness. A $100K/yr Basel gate package for a G-SIB
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#+filetags: :passepartout:compliance:framework:fatf:
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risk-weight mapping correctness. A $100K/yr Basel gate package for a G-SIB
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is a trivial expense relative to the capital requirement penalty of getting the
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mapping wrong.
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** FATF (Financial Action Task Force) — AML/CFT Standards
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International standard-setter for anti-money laundering and counter-terrorism
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financing. 40 Recommendations covering: risk assessment, customer due diligence
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(CDD), beneficial ownership transparency, suspicious transaction reporting,
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targeted financial sanctions, proliferation financing. National implementation
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varies by jurisdiction.
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Who must comply: Financial institutions, DNFBPs (designated non-financial
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businesses and professions), virtual asset service providers (VASPs). In
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practice: every bank, money service business, crypto exchange, and high-value
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dealer globally.
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Penalties: National enforcement varies. Systemic failures lead to FATF grey-list
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(monitoring) or black-list (counter-measures). Grey-listing increases transaction
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costs — Iran and North Korea are black-listed.
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Why it matters: FATF's CDD requirements are the most widespread and
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rule-complex compliance obligation globally. The gate stack can encode
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tiered CDD rules, prove that every customer onboarding followed the correct
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verification path, and produce an auditable trail for every suspicion
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