World Bank2013-02-252013-02-252005-07https://hdl.handle.net/10986/12495This report on anti-money laundering (AML) and combating the financing of terrorism (CFT) regulation addresses the consequences of these regulations on low-income people. The introduction of new or tightened AML/CFT regulations may have the unintended and undesirable consequence of reducing the access of low-income individuals to formal financial services. As a means to avoid this outcome, this paper argues in favor of gradual implementation of new measures; the adoption of a risk-based approach to regulation; and the use of exemptions for low-risk categories of transactions.en-USCC BY 3.0 IGOACCESS TO FINANCIAL SERVICESACCESS TO SERVICESACCOUNT HOLDERSACTS OF TERRORISMADVERSE EFFECTSAGRICULTURAL BANKSALTERNATIVE FINANCIAL INSTITUTIONSANTI-MONEY LAUNDERINGAUDITSBANK ACCOUNTSBANKING RELATIONSHIPBANKING SERVICESBANKSBONDBUSINESS RELATIONSHIPSBUSINESS TRANSACTIONSBUSINESSESCAPITAL FLOWSCERTIFICATESCHARITABLE SECTORCLIENT BASECLIENT IDENTIFICATIONCLIENT INFORMATIONCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL FUNDINGCOMMERCIAL TRANSACTIONSCOMMODITYCOMMUNITY BANKSCOMPLIANCE COSTSCONSUMER CREDITCONVENTIONAL BANKSCOOPERATIVESCORRUPTIONCREDIT INSTITUTIONSCREDIT UNIONSCRIMINAL LIABILITYCRIMINAL PURPOSESCURRENCYCURRENT LAWSCUSTOMER IDENTIFICATIONDEBIT CARDSDENIAL OF ACCESSDEPOSITDEPOSITORYDEPOSITORY INSTITUTIONSDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT BANKSDONOR FUNDINGDOUBLE BOTTOM LINEDRUG TRAFFICKINGDUE DILIGENCEDUE DILIGENCE REQUIREMENTSECONOMIC DEVELOPMENTELECTRONIC MONEYEMPLOYEREQUIPMENTEXCHANGE RATESEXPOSUREEXTERNAL AUDITSFINANCIAL ACTIVITYFINANCIAL CRIMESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTELLIGENCEFINANCIAL INTERMEDIARIESFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL PRODUCTSFINANCIAL REGULATIONFINANCIAL SECTOR DEVELOPMENTFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICES PROVIDERSFINANCIAL SUPPORTFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL TRANSACTIONSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFORMAL FINANCIAL SECTORFORMAL FINANCIAL SERVICESFUNDS TRANSFERSFUTURESGENERAL PUBLICGLOBAL PAYMENTSGRAPHICSGREATER ACCESSGROUP LENDINGHOUSEHOLDSHUMAN RESOURCEHUMAN RESOURCE CAPACITYHUMAN RESOURCE POLICIESIDIDENTIFICATION REQUIREMENTSIDENTITY CARDILLICIT ACTIVITIESILLICIT ACTIVITYINCOMEINCOME TAXINFORMATION EXCHANGEINFORMATION SHARINGINFORMATION SYSTEMSINSTITUTIONAL CAPACITYINSURANCE COMPANYINTEREST RATEINTERNAL AUDITORINTERNAL CONTROLINTERNAL CONTROLSINTERNATIONAL BEST PRACTICEINTERNATIONAL COOPERATIONINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL STANDARDSINVESTMENT CAPITALJURISDICTIONJURISDICTIONSLAW ENFORCEMENTLEGAL PROTECTIONLEVEL OF SECURITYLICENSELIFE INSURANCELIQUID SECURITIESLOAN INSTITUTIONSLOAN OFFICERSLOAN SIZESLOCAL BANKSMFIMFISMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMICROINSURANCEMIDDLE-INCOME ECONOMIESMONEY LAUNDERERSMONEY LAUNDERINGMONEY LAUNDERING ACTIVITYMONEY MARKETMONEY ORDERSMONEY TRANSFERSMORTGAGEMORTGAGE CREDITNEW TECHNOLOGIESNEW TECHNOLOGYNONPROFIT ORGANIZATIONSOPERATIONAL COSTOUTSTANDING BALANCEOWNERSHIP STRUCTURESPAYMENT SYSTEMPAYMENTS NETWORKPAYMENTS SYSTEMPDFPHOTOPHOTO IDPOOR CLIENTSPORTFOLIOPORTFOLIO MANAGEMENTPOSTAL BANKPOSTAL BANKSPOSTAL SAVINGSPRIVATE BANKINGPUBLIC POLICYPUBLIC RECORDREAL ESTATERECORD KEEPINGREGULATORSREGULATORY REGIMESREMITTANCEREMITTANCESREPUTATIONREPUTATION RISKSREPUTATIONSRESULTRESULTSRISK ANALYSISRISK MANAGERRISK OF FRAUDRISK OF MONEY LAUNDERINGRURAL BANKSRURAL CREDITRURAL CREDIT COOPERATIVESSAVINGS ACCOUNTSSAVINGS BANKSAVINGS BANKSSECURITIESSECURITIES ISSUESSERVICES TO CLIENTSSHAREHOLDERSSIGNATURESMALL LOANSMALL LOANSSTATE BANKSUPERVISIONSUSPICIOUS ACTIVITIESTECHNICAL ASSISTANCETERRORISMTERRORISTTERRORIST ATTACKTERRORIST ORGANIZATIONSTRANSACTIONTRANSACTION REPORTINGTRANSFERABLE SECURITIESTRANSPARENCYTREASURYUSESVERIFICATIONVILLAGEVILLAGESVOLATILITYVOLUNTARY DEPOSITWEAK ENFORCEMENTWEBWEB SITEWIRE TRANSFERSWORKING CAPITALWorld Bank10.1596/12495