Spring Meetings

Addressing illicit financial flows is increasingly prioritized by the international community, requiring countries to develop risk-based monitoring of cross-border payments. Incorrect application of a risk-based approach to anti-money laundering may result in countries and financial institutions requiring more stringent measures than warranted by risk levels, particularly for remittances. Such approach can contribute to inefficiencies of cross-border payments, such as higher costs, slower speed, and lower access, potentially including country de-risking and pressure on correspondent banking relationships, which is particularly important for fragile and conflict-affected states. The presentation will focus on a solution outlined in the Fund-staff developed “Framework for AML/CFT Risk Assessment of a Payment Corridor”, as a deliverable under the G20 Roadmap for enhancing cross-border payments, which aims to reduce the cost of remittances in lower ML/TF risk remittance corridors by decreasing the compliance and regulatory costs for remittance service providers, ultimately promoting inclusive growth. The presentation will also provide policy advice on developing mechanisms for identification of higher risk countries and monitoring financial flows.   

Publications

Lowering the Remittances Cost and Mitigating Illicit Financial Flows

A Draft Framework for Money Laundering/Terrorist Financing Risk Assessment of Remittance Corridor

Maksym works in the Financial Integrity Group of the IMF’s Legal Department on AML/CFT and other financial integrity and governance topics, primarily for the IMF-supported programs and surveillance as well as capacity development. He focuses on the financial sector issues and ML/TF risks, particularly from the cross-border financial flows. Before joining the Legal Department Maksym worked as economist in the European Department of the IMF, covering the real sector and structural reforms.