The world’s anti-money laundering watchdog has launched a toolkit to help countries strengthen their risk-based approach to fighting financial crime.

"These new practical resources will support countries in assessing their money laundering risks,” the Paris-based Financial Action Task Force ( FATF ) says.

Launched on August 28, the toolkit covers four areas that often lack data or are either rapidly evolving or cross-cutting – corruption, virtual assets and their providers, legal persons and arrangements, and the informal economy.

“These areas are often linked and used in combination to launder funds. For example, corrupt officials may exploit their positions to siphon government funds and use shell companies to disguise the origin and movements of funds,” the task force says.

“By integrating findings across these risk areas, rather than assessing them in isolation, countries can build a more comprehensive and effective anti-money laundering ( AML ) framework.”

Elisa de Anda Madrazo, the senior Mexican finance ministry official who serves as FATF president, says a risk-based approach ensures better prioritization of resources to combat financial crime “where it is really hurting our communities”.

“It also means a proportionate response, which means that activity isn’t driven into the dark where we cannot see it,” she says.

The watchdog says the toolkit can be incorporated into national risk assessments and also used to assess risks in specific areas of financial crime, estimated to generate trillions of dollars in illicit revenues every year.