Are the Basel AML Guidelines legally enforceable?

No. They are not binding but are adopted by most regulators as the foundation for national AML regulations.

Which institutions must follow these guidelines?

Banks and banking regulators primarily reference these guidelines for designing or supervising AML programs.

How are these guidelines different from FATF standards?

The Basel guidelines focus specifically on banking institutions, while FATF's scope is broader, covering all financial sectors.

Do the guidelines require customer risk classification?

Yes. A risk-based approach is central, requiring banks to classify customers by risk level and adjust controls accordingly.

Basel Committee AML Guidelines

Global

2001

AML/CFT

Overview

The Basel Committee on Banking Supervision (BCBS) issued its Anti-Money Laundering (AML) Guidelines in 2001 and revised them in 2004 to strengthen global banking standards. These guidelines provide internationally accepted principles for preventing the use of the banking system for money laundering and terrorist financing.

The guidelines promote a risk-based approach to customer due diligence, internal controls, compliance governance, and regulatory cooperation. While non-binding, they are widely adopted by national regulators and form the basis for AML supervision across jurisdictions. The framework is particularly relevant to banks, central banks, financial regulators, and multinational banking institutions operating under Basel norms.

Key Obligations

Implement sound KYC policies and risk-based customer identification
Establish internal controls and independent audit mechanisms
Appoint a designated compliance officer at senior management level

Maintain records of customer identity and transaction histories
Report suspicious activity to relevant authorities in a timely manner

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