Central Banks Report Rise in Anti-Money Laundering and Counter-Terrorism Financing Risks
According to the Financial Stability Benchmarks 2025 report, approximately one in 10 central banks worldwide have reported a surge in anti-money laundering (AML) and countering the financing of terrorism (CFT) risks over the last year. This rise in AML/CFT risks highlights the increasing challenges faced by central banks in maintaining financial stability.
Increased AML/CFT Risks
Out of 43 central banks surveyed, six (14%) reported an escalation in AML/CFT risks for the year under review. The increase in AML/CFT risks means that these central banks are grappling with more complex and widespread issues related to money laundering and terrorist financing. This could potentially destabilize their financial systems, requiring them to implement more robust measures to combat these risks.
On the other hand, just over a tenth (11.6%) of respondents indicated a decrease in the rate of AML/CFT risks. This suggests that some central banks are succeeding in their efforts to mitigate these types of risks, likely through the implementation of stringent regulations and controls.
The remainder (74.4%) of central banks reported that risks remained roughly the same. This could be interpreted as these banks maintaining a steady grip on their AML/CFT risk management, or it could hint at a persistent level of risk that has yet to be effectively addressed.
AML/CFT Risks by Economic Categorisation
The report did not specify how it categorised AML/CFT risks by economy, but it’s important to note that these risks can vary widely depending on a country’s economic structure, regulation, and enforcement capacity. For instance, economies with more stringent regulations and stronger enforcement mechanisms might be better equipped to handle AML/CFT risks compared to those with weaker systems. Additionally, economies with larger financial sectors might be more exposed to these risks due to the sheer volume of financial transactions taking place.
Overall, the findings underscore the importance of strong AML/CFT measures for central banks. As financial institutions that play crucial roles in maintaining economic stability, central banks must continue to adapt and strengthen their risk management strategies to address the evolving landscape of AML/CFT risks. This is not only vital for their own financial stability but also for the broader global financial system.
For more details, please see the full report here.
