FATF launches public consultation on guidance to increase payment transparency
Paris, June 25
The Financial Action Task Force is inviting views of stakeholders from across industry and civil society on new guidance to support the implementation of strengthened FATF Standards on payment transparency when they come into effect, FATF said in a statement.
The revisions to FATF's Recommendation16, agreed in June 2025, will keep pace with changes in the payment landscape, and strengthen the safety and security of the international payment system by increasing transparency of information that accompanies cross-border payments and requiring the introduction of tools to protect against fraud and error. All countries around the world are expected to be ready to implement the changes by the end of 2030.
The FATF wants to hear from as many stakeholders as possible, including financial institutions worldwide with different business models and capacity, payment system operators, civil society and the research community. Input from emerging economies and lower-capacity jurisdictions is particularly welcome, as per the statement.
Feedback is invited on a range of issues including whether the guidance provides sufficient clarity and support on: Detecting and preventing misdirected payments, including by leveraging the three options for alignment checks foreseen in the revised Standard; Implementation that supports financial inclusion, including in lower-capacity jurisdictions; How Recommendation16 applies to newer payment methods, such as digital wallets and mobile money; and implementing Recommendation16 and meeting data protection and privacy requirements together.
The full list of consultation questions is set out in the explanatory memorandum to the draft Guidance, as per the statement.
FATF President, Elisa de Anda Madrazo, said, "We want to ensure this new guidance is fit for purpose, and supports countries and financial institutions across the world in implementing the new "travel rule" requirements by the deadline of 2030. I urge everyone with an interest to share their views, so that we can unleash the full potential of the strengthened Recommendation 16, which will better equip authorities and financial institutions to follow the money and disrupt harmful criminal activity," as quoted by the statement.
— ANI
Reader Comments
Digital wallets and mobile money are huge in India now. UPI is our pride, and this new rule could affect how we do small transactions. I hope the consultation takes our model into account, otherwise it might hamper financial inclusion rather than help it. 🤔
Finally, someone targeting fraud in cross-border payments! Too many times people have lost money to misdirected payments. But implementing this by 2030 in a country like India with millions of daily transactions will require massive infrastructure upgrade. Let's hope RBI and banks are ready.
As someone working in fintech in India, I see both opportunity and challenge. The travel rule will increase compliance costs for startups. But if done right, it could actually build trust in digital payments, especially for NRIs sending money home. Balancing transparency with privacy will be key.
Important step, but I wish FATF had consulted more with developing countries like India before finalizing. Our payment ecosystem is unique, with Aadhaar and UPI already doing some of this work. Instead of a one-size-fits-all approach, they should allow flexibility for local systems. 🙏
This is a great initiative for global financial security. However, I'm concerned about data privacy implications. In India, we have strong data protection laws now, and this might create friction with global requirements. Hope the guidance addresses how to reconcile local laws with FATF standards.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.