Fintech Notes

How should the international anti-money laundering and combating the financing of terrorism (AML/CFT) standards be applied in a retail CBDC (rCBDC) setting? This chapter identifies the main categories and characteristics of rCBDCs that may have financial integrity implications and analyzes the potential impact that various rCBDC features might have on effective implementation of an issuing jurisdiction’s AML/CFT regime. It provides guidance to policymakers and competent authorities by presenting important considerations that should precede an rCBDC launch and inform rCBDC designs, as well as through suggested good practices on the application of AML/CFT measures in an rCBDC context. Due to the novelty of rCBDCs and limited practice, this chapter highlights where current rCBDC designs pose challenges or raise questions with respect to specific aspects of prevailing international standards.