Financial Action Task Force (FATF)

What Is the Financial Action Task Force (FATF)?

The Financial Action Task Force (FATF) is an intergovernmental organization that plans and elevates policies and standards to combat financial crime. Proposals made by the Financial Action Task Force (FATF) target money laundering, fear based oppressor financing, and different dangers to the global financial system. The FATF was made in 1989 at the command of the G7 and is settled in Paris.

Understanding the Financial Action Task Force (FATF)

The rise of the global economy and international trade has given rise to financial crimes, for example, money laundering. The Financial Action Task Force (FATF) makes proposals for combating financial crime, audits members' policies and procedures, and looks to increase acceptance of anti-money laundering regulations across the globe. Since money launderers and others adjust their methods to stay away from anxiety, the FATF must refresh its proposals at regular intervals.

A rundown of suggestions to combat psychological militant financing was added in 2001, and in the most recent update, distributed in 2012, the proposals were expanded to target new dangers, including financing the spread of weapons of mass destruction. Suggestions were likewise added to be clearer on transparency and corruption.

Members of the Financial Action Task Force

Starting around 2021, there were 39 members of the Financial Action Task Force, including the United Nations and the World Bank. To turn into a member, a country must be viewed as decisively important (large population, large GDP, developed banking and insurance sector, and so on), must stick to globally accepted financial standards, and be a participant in other important international organizations.

When a member, a country or organization must underwrite and support the latest FATF proposals, focus on being assessed by (and assessing) different members, and work with the FATF in the development of future suggestions.

A large number of international organizations take part in the FATF as onlookers, every one of which has some contribution in anti-money laundering activities. These organizations incorporate Interpol, the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), and the World Bank.

Features

• Practically completely developed countries support or are members of the FATF.
• The task force was begun in 1989 in Paris, where it is as yet called the Groupe d'action Financi\u00e8re.
• The Financial Action Task Force, or FATF, was initially begun to combat money laundering. It has been expanded to likewise target the financing for weapons of mass destruction, corruption, and psychological militant financing.