Asian Development Bank
Overview: Nonbank financial institutions (NBFIs) serve as a viable option to banks by providing financial services to boost economic activity. They have expanded rapidly since the 2008/09 global financial crisis. Given the growing importance of NBFIs in facilitating access to finance and financial services, it becomes increasingly imperative for them to comply with antimoney laundering and combating the financing of terrorism (AML/CFT) requirements to avoid abuse by criminals or those involved in the financing of terrorism.
The Asian Development Bank (ADB), through its Office of Anticorruption and Integrity (OAI), has recognized the challenges facing NBFIs in meeting national and international AML/CFT requirements. Accordingly, ADB decided to develop a technical assistance project designed to develop AML/CFT approaches, methodologies, and controls for NBFIs. This handbook was developed under the auspices of the technical assistance commissioned by OAI. The purpose of the handbook is to assist NBFIs in developing and implementing internal policies, procedures, and controls, as well as to provide guidance on practical issues to manage the risks of being exposed to money laundering and the financing of terrorism.
This publication reflects the requirements of the international standard setter, the Financial Action Task Force, in the fight against money laundering and terrorist financing. Controls, policies, and procedures that should be implemented by individual NBFIs need to (i) reflect the requirements in their jurisdiction and (ii) be consistent with best practice and the NBFI’s nature and scope of activities.
ADB hopes this handbook will be useful in your efforts to ensure that your institution is not used to launder the proceeds of crime or to finance terrorism.
Clare Wee
Head Office of Anticorruption and Integrity
Asian Development Bank
