January 16, 2014 - A new set of guidelines has been issued by the Basel Committee on Banking Supervision which covers how banks should manage the risks related to money laundering and the financing of terrorism.

The organisation noted that the prudent management of these risks alongside supervisory measures is critical when it comes to protecting the safety and soundness of banks and global financial systems.

The new guidelines are consistent with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferations issued in 2012 by the Financial Action Task Force (FATF).

Guidelines produced in Basel include information on how risks should be assessed, understood, managed and mitigated, as well as the development of three lines of defence against the problem of money laundering and recommendations on IT systems.

There are also details on how information should be managed, which cover keeping records up-to-date, supplying information to supervisors and general record-keeping guidance.