Financial Action Task Force (FATF)

  • The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 during the G7 Summit in Paris.
  • Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.
  • The objectives of the FATF are to (a) set standards and promote effective implementation of legal, regulatory and operational measures (b) for combating money laundering (c)terrorist financing and (d) other related threats to the integrity of the international financial system.
  • Currently, the FATF comprises 37 member jurisdiction and 2 regional organisations representing most major financial centres in all parts of the globe.
  • 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.

Listing by FATF:

  • Grey List: Countries that are considered a safe haven for supporting terror funding and money laundering are put in the grey list. This inclusion serves as a warning to the country that it may enter the blacklist.
  • Black List: Countries known as Non-Cooperative are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly adding or deleting entries
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