Financial Action Task Force (FATF)

FATF stands for the Financial Action Task Force. It is known as the Groupe d’action financière in French. The organization was formed in 1989.

FATF is an intergovernmental organization that sets global standards for combating money laundering and terrorist financing. Its membership consists of 37 countries, as well as two international organizations (the European Commission and the Gulf Cooperation Council).

The primary function of FATF is to develop and promote policies, laws, and regulations to prevent money laundering and terrorist financing. Some of its primary functions include:

  1. Developing and updating international standards for anti-money laundering and counter-terrorist financing.
  2. Providing technical assistance and guidance to countries in implementing these standards.
  3. Conducting assessments of countries’ compliance with these standards.
  4. Identifying and publicizing jurisdictions that pose significant risks for money laundering and terrorist financing.
  5. Providing a forum for member countries to share information and cooperate on matters related to money laundering and terrorist financing.
  6. Working with the private sector and other stakeholders to raise awareness and promote best practices in the fight against money laundering and terrorist financing.
  7. Monitoring the implementation of global standards and providing recommendations for improvement.
  8. Encouraging international cooperation and coordination to combat money laundering and terrorist financing.
  9. Providing a platform for dialogue and exchange of information between member countries and other international organizations.
  10. Promoting the adoption of international standards by non-member countries.

It is not mandatory for countries to follow the recommendations of FATF, but non-compliance can have serious consequences. Countries that are identified as having significant deficiencies in their anti-money laundering and counter-terrorist financing frameworks may be subject to financial and economic sanctions.

This page was last updated on June 12, 2024.

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