The International Monetary Fund (IMF) has welcomed the Financial Action Task Force's (FATF) shift towards a more risk-based assessment of money laundering, but has acknowledged that this cannot predict or prevent money laundering. This follows a separate academic report which voiced criticism of both organisations' approaches to preventing money laundering. The IMF report approved FATF's shift towards a more risk-based approach, first adopted in 2012. The approach requires companies to identify, assess and understand the risks of money laundering, and to take steps to mitigate them. The IMF said the revised standards provided a strong basis for it to protect the integrity of the financial system. It said the inclusion of tax crimes as a predicate offence for money laundering helped the IMF with its policy recommendations on tax issues. The IMF also highlighted FATF's shift last year towards a revised assessment methodology, which will see countries assessed for how effective their
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