1. Being aware of the risks incurred by banks of being used, intentionally or unintentionally, for criminal activities, the Basel Committee on Banking Supervision is issuing these guidelines to describe how banks should include money laundering (ML) and financing of terrorism (FT) risks within their overall risk management.

2. The Committee has a long-standing commitment to promote the implementation of sound AntiMoney Laundering and Countering Financing of Terrorism (AML/CFT) policies and procedures that are critical in protecting the safety and soundness of banks and the integrity of the international financial system. Following an initial statement in 1988, [See BCBS, Prevention of criminal use of the banking system for the purpose of money-laundering, December 1988.] it has published several documents in support of this commitment. In September 2012, the Committee reaffirmed its stance by publishing the revised version of the Core principles for effective banking supervision, in which a dedicated principle (BCP 29) deals with the abuse of financial services.