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Washington Journal of Law, Technology & Arts

Authors

Emery S. Kobor

Abstract

This Article explains that the application of anti-money laundering (AML) regulation, supervision, and enforcement is relevant to financial inclusion, but is not, in itself, necessarily determinative of the success or failure of financial inclusion initiatives or their impact on economic growth. Successful payments system innovation, particularly payment tools targeting underserved markets, requires effective entrepreneurship operating in an environment of good governance and rational economic policies. AML safeguards help to deter corruption and other forms of financial crime, which helps to establish and maintain economic stability and preserve the rule of law, creating a supportive environment for innovation and financial inclusion. This Article explains that the revised Financial Action Task Force (FATF) Recommendations, the international standard for AML practices, promote a risk-based approach to implementation, allowing countries flexibility in order to encourage the widest possible participation in the regulated and supervised financial system.

First Page

303

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