The Financial Action Task Force (FATF) is an intergovernmental organization that works to combat money laundering and terrorist financing. It was established in 1989 by the G7 countries, and it now has 37 member countries and jurisdictions.
The main role of the FATF is to set international standards for combating money laundering and terrorist financing. These standards are known as the FATF Recommendations, and they are designed to prevent the misuse of the financial system for illicit purposes. The FATF Recommendations provide a framework for countries to develop and implement effective laws, regulations, and policies to combat money laundering and terrorist financing.
In addition to setting international standards, the FATF also conducts assessments of its member countries to determine their compliance with the FATF Recommendations. These assessments, known as Mutual Evaluations, help the FATF identify any weaknesses in a country’s anti-money laundering and counter-terrorist financing regime and provide recommendations for improvement.
The FATF also works with international organizations, such as the World Bank and the International Monetary Fund, to promote the implementation of the FATF Recommendations globally. By doing so, the FATF helps to protect the integrity of the global financial system and prevent the use of the financial system for illicit purposes.
This page was last updated on January 2, 2023.