FATF launches public consultation on guidance to increase payment transparency

Financial Action Task Force (FATF), vide Public Consultation dated 24 June 2026, has announced an important update regarding the launch of a public consultation on draft guidance to support implementation of the strengthened FATF Recommendation 16 on payment transparency.

Key Details of the Update –
• FATF has launched a public consultation seeking feedback on draft guidance for implementing the revised Recommendation 16 on payment transparency.
• The guidance supports the revisions to Recommendation 16 agreed in June 2025, aimed at enhancing transparency in cross-border payments and strengthening safeguards against fraud and payment errors.
• The revised standards are intended to keep pace with evolving payment methods and improve the safety and security of the international payment system.
• Applicability: Feedback is invited from financial institutions, payment system operators, civil society, researchers, and other stakeholders globally, with particular encouragement for participation from emerging economies and lower-capacity jurisdictions.
• The consultation seeks views on:
• Detecting and preventing misdirected payments, including use of the three alignment check options under the revised standard.
• Supporting financial inclusion during implementation, particularly in lower-capacity jurisdictions.
• Application of Recommendation 16 to newer payment methods such as digital wallets and mobile money.
• Balancing implementation requirements with data protection and privacy obligations.
• The consultation questions are provided in the explanatory memorandum accompanying the draft guidance.
• Effective Date: Countries are expected to implement the revised Recommendation 16 by the end of 2030.
• Key Changes: The strengthened Recommendation 16 expands payment transparency requirements, updates the "travel rule" framework for modern payment methods, and introduces measures to reduce fraud and payment errors.
• Penalty/Consequence: Not Mentioned.

Actions if Any –
• Submit comments on the draft guidance to FATF.Publicconsultation@fatf-gafi.org with the subject line: "Comments of [author] on the draft R.16 Guidance."
• Include the organisation's name, nature of business, and contact details with the submission.

Compliance Deadline –
• Responses to the public consultation must be submitted by 21 August 2026.
• Countries are expected to implement the revised Recommendation 16 by the end of 2030.

Key Details of the Update –
• FATF has launched a public consultation seeking feedback on draft guidance for implementing the revised Recommendation 16 on payment transparency.
• The guidance supports the revisions to Recommendation 16 agreed in June 2025, aimed at enhancing transparency in cross-border payments and strengthening safeguards against fraud and payment errors.
• The revised standards are intended to keep pace with evolving payment methods and improve the safety and security of the international payment system.
• Applicability: Feedback is invited from financial institutions, payment system operators, civil society, researchers, and other stakeholders globally, with particular encouragement for participation from emerging economies and lower-capacity jurisdictions.
• The consultation seeks views on:
• Detecting and preventing misdirected payments, including use of the three alignment check options under the revised standard.
• Supporting financial inclusion during implementation, particularly in lower-capacity jurisdictions.
• Application of Recommendation 16 to newer payment methods such as digital wallets and mobile money.
• Balancing implementation requirements with data protection and privacy obligations.
• The consultation questions are provided in the explanatory memorandum accompanying the draft guidance.
• Effective Date: Countries are expected to implement the revised Recommendation 16 by the end of 2030.
• Key Changes: The strengthened Recommendation 16 expands payment transparency requirements, updates the "travel rule" framework for modern payment methods, and introduces measures to reduce fraud and payment errors.
• Penalty/Consequence: Not Mentioned.

Actions if Any –
• Submit comments on the draft guidance to FATF.Publicconsultation@fatf-gafi.org with the subject line: "Comments of [author] on the draft R.16 Guidance."
• Include the organisation's name, nature of business, and contact details with the submission.

Compliance Deadline –
• Responses to the public consultation must be submitted by 21 August 2026.
• Countries are expected to implement the revised Recommendation 16 by the end of 2030.