Banks appear to have improved their awareness of ML/TF risk compared to 2022 but seem to continue to attribute less significance to ML/TF risk than to other operational risk aspects.
By contrast, AML/CFT supervisors express ongoing concerns about banks’ AML/CFT controls which are often in place but not always effective. In particular, according to supervisors, many banks fail to consider TF risks properly. According to AML/CFT supervisors, 70% of banks rely too heavily on the screening of targeted financial sanctions lists instead of monitoring risks associated with terrorist financing.
