Financial Action Task Force (FATF)

The Financial Action Task Force (on Money Laundering) (FATF), is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. In 2001, its mandate expanded to include terrorism financing.

  • The FATF Secretariat is housed at the OECD headquarters in Paris.
  • The FATF’s decision making body, the FATF Plenary, meets three times per year. 
  • The FATF is a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
  • The FATF has developed a series of recommendations that are recognized as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction.  
  • They form the basis for a coordinated response to these threats to the integrity of the financial system and help ensure a level playing field.  First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003 and most recently in 2012 to ensure that they remain up to date and relevant, and they are intended to be of universal application.
  • The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally.  
  • In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

Since 2000, to fight money laundering and terror financing the FATF maintains the current list of nations: FATF blacklist (formally called the “Call for action”) and the “FATF grey list” (formally called the ‘”Other monitored jurisdictions“)

References

Who we are, FATF.

Further Read

Financial Action Task Force (FATF), Investopedia.

What is FATF, Business Standard.