A Playbook for Financial Institutions in Emerging Markets
A practical Good Practice Note that helps financial institutions understand how technology and analytics can strengthen anti-money laundering and countering the financing of terrorism (AML/CFT) risk management. Designed as a modular resource, it provides guidance on how technology can improve customer due diligence, name and transaction screening, suspicious activity monitoring, the use of manual controls, and approaches to technology selection, deployment, and maintenance. The note also draws on global best practices, case studies, and lessons learned to help institutions navigate both the opportunities and challenges of adopting technology in emerging market contexts.
IFC published this Good Practice Note to provide financial institutions with practical resources to combat financial crime, which undermines development outcomes and weakens access to safe, inclusive financial services. It responds to requests from partners for guidance on using technology more effectively, particularly in lower-capacity environments, and complements broader industry efforts by offering a resource tailored to the realities of emerging markets. The publication also reflects IFC’s aim to support stronger access to the international financial system, including correspondent banking relationships, and improve the investment climate in the markets it serves. By helping institutions integrate technology and advanced analytics into AML/CFT risk management, the Good Practice Note seeks to support financial inclusion, strengthen financial crime detection, and promote sustainable economic growth.
The Good Practice Note is intended to support a range of users within financial institutions. It can help compliance staff strengthen internal controls for managing money laundering and terrorist financing risks, raise awareness of AML/CFT technologies among executives and boards of directors, and support internal training. It can also serve as a useful resource for internal auditors seeking to enhance their independent reviews of AML/CFT controls.
This publication is part of IFC’s broader set of resources to help financial institutions address money laundering and terrorist financing risks. In 2019, IFC published Good Practice Note: AML/CFT Risk Management in Emerging Market Banks, which outlines key programmatic elements for correspondent banking relationships. In 2022, IFC also published a free, publicly available eLearning course and additional resources, including red flags, on countering trade-based money laundering (TBML).”
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