Financial crime, including money laundering, terrorism financing, and fraud, is a growing concern in the Asia-Pacific region, where rapidly evolving financial sectors, the rise of fintech innovations, and cross-border transactions create an attractive target for illicit activities. The region's diverse economies, coupled with varying levels of regulatory maturity, have highlighted the need for robust, harmonised efforts to combat these threats.
As fintech continues to transform financial services, ensuring that these innovations do not become enablers of financial crime is critical. The Financial Action Task Force (FATF) recommendations provide valuable guidance for countries to establish comprehensive frameworks that safeguard financial systems while adhering to international standards. However, policymakers and regulators in the region face significant challenges in translating these global recommendations into effective, context-specific regulations. These challenges include balancing the need for stringent compliance with the risk of unintended consequences, such as de-banking and financial exclusion, which could harm vulnerable communities and businesses.
In collaboration with Griffith University’s Academy of Financial Crime Investigation and Compliance, the Griffith Asia Institute has teamed up with the International Law Institute and the Asian Development Bank Institute to host a roundtable dialogue that will bring together policymakers, regulators, fintech innovators, and financial service providers from across the Asia-Pacific region to address the pressing issue of financial crime, including the emerging risks posed by fintech developments, and the ongoing efforts to align with FATF recommendations. This event aims to foster a collaborative environment where participants can exchange insights and best practices on how different countries are implementing these global standards. By building the capacity of regulators and policymakers to effectively implement FATF recommendations, this roundtable will also focus on mitigating unintended negative impacts. Through open dialogue and knowledge sharing, it will strengthen cross-country cooperation, promote effective regulatory approaches, and identify solutions that strike a balance between security, fintech innovation, and financial inclusion in the Asia-Pacific region.
More specifically, the Policy Dialogue will be an opportunity for stakeholders to:
- Discuss how countries can issue guidance that meet new FATF inclusion guidelines to suit their specific legal, economic, and cultural contexts while maintaining effectiveness, particularly in the face of new fintech solutions, such as eKYC.
- Explore ways to implement new FATF inclusion guidelines and recommendations on Simplified Due Diligence that prevent financial crime without causing de-banking or financial exclusion, especially for vulnerable groups
- Identify strategies for enhanced cross-border collaboration in the Asia-Pacific to address financial crimes that transcend national borders, And bulding capacity in digital ID systems and policy for data protection and cyber security frameworks.
- Discuss how low risk segments can be effectively identified in the context of Monel Laundering (AML) and Counter-Terrorism Financing (CTF) as well as counter Proliferation Financing (CPF ) efforts in the context of digital financial services.
- Explore how enhanced due diligence measures can be applied to high-risk sectors such as fintech, real estate, casinos, and non-profits to prevent financial crimes.
- Examine the role of public-private partnerships, including fintech firms, in strengthening financial crime prevention, data sharing, and compliance efforts.
- Review effective monitoring and evaluation strategies to track the success of FATF implementation and ensure regulatory measures are achieving the desired outcomes within the evolving fintech landscape.
