Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

Which of the following is highlighted in FATF SR Six regarding alternative remittance systems?

1. Impose AML requirements on these systems

2. Increase transaction fees for users

3. Limit the transfer amounts

4. Promote these systems for efficiency

The correct answer is: Impose AML requirements on these systems

FATF SR Six emphasizes the necessity of imposing anti-money laundering (AML) requirements on alternative remittance systems. This is crucial because these systems can often be used as channels for illicit financial activities due to their informal nature and lack of regulatory oversight. By mandating AML requirements, FATF aims to ensure that these systems implement robust measures to detect, prevent, and report suspicious activities, thus integrating them into the formal financial architecture and enhancing overall financial transparency. While increasing transaction fees, limiting transfer amounts, or promoting systems for efficiency may have implications for how alternative remittance systems operate, they do not directly address the central concern of preventing money laundering risks associated with these systems. The focus of FATF's recommendations is on compliance and regulation, thereby underscoring the importance of establishing controls that align with international standards for preventing financial crimes.