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“The Financial Action Task Force (FATF)”

Posted on : 06 Dec 2019

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  • The FATF was created in 1989 at the behest of the G7 and is headquartered in Paris.
  • The Financial Action Task Force (FATF) is an intergovernmental organization that designs and promotes policies and standards to combat financial crime.
  • Recommendations created by the Financial Action Task Force (FATF) target money laundering, terrorist financing, and other threats to the global financial system.
  • The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
  • There are 37 members of the Financial Action Task Force, including the European Commission and the Gulf Cooperation Council.
  • To become a member, a country must be considered strategically important (large population, large GDP, developed banking and insurance sector, etc.), must adhere to globally accepted financial standards, and be a participant in other important international organizations.
  • Once a member, a country or organization must endorse and support the most recent FATF recommendations, commit to being evaluated by (and evaluating) other members, and work with the FATF in the development of future recommendations.
  • A large number of international organizations participate in the FATF as observers, each of which has some involvement in anti-money laundering activities.
  • These organizations include Interpol, the International Monetary Fund (IMF), Organization for Economic Cooperation and Development (OECD), and World Bank.  

Article Related Questions

  1. Consider the following statements regarding “The Financial Action Task Force (FATF)”
    1.The Financial Action Task Force (FATF) is an intergovernmental organization
    2.The FATF is a policy-making body
    Which of the statements given above is/are correct?

  2. 1.1 only

    2.2 only

    3.Both 1 and 2

    4.Neither 1 nor 2

    Right Ans : Both 1 and 2

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