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The correlation of Financial Action Task Force recommendations: the perception of compliance officers concerning the deployment of third parties and Fintech for customer due diligence

Author

Listed:
  • Nasir Sultan
  • Norazida Mohamed
  • David Chisunga
  • Akhbar Satar

Abstract

Purpose - This study aims to explore the challenges financial institutions face in deploying third parties and financial technologies to perform customer due diligence. Design/methodology/approach - This study applied a qualitative technique and interviewed 25 compliance officers from different financial institutes and their regulators. Findings - This study found that the third-party recommendation of the Financial Action Task Force is restrictive, contradictory, time-consuming and seriously lacks standardisation. Furthermore, this recommendation restricts the use of modern Fintechs. This recommendation has posed significant challenges for the adoption of Fintechs, international banking/onboarding, digital onboarding and financial inclusion. Practical implications - Thus, revisiting the Financial Action Task Force Recommendations 17 and 15 in correlation with Recommendation 10 is suggested. Originality/value - The Recommendation 17 is rarely discussed in details, especially in developing courtiers’ context.

Suggested Citation

  • Nasir Sultan & Norazida Mohamed & David Chisunga & Akhbar Satar, 2025. "The correlation of Financial Action Task Force recommendations: the perception of compliance officers concerning the deployment of third parties and Fintech for customer due diligence," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 28(2), pages 292-314, March.
    • Handle: RePEc:eme:jmlcpp:jmlc-08-2024-0135
    DOI: 10.1108/JMLC-08-2024-0135
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