Financial Action Task Force (FATF)

The FATF is the global money laundering and terrorist financing watchdog established in 1989 following a G-7 meeting of developed nations in Paris.

 Initially, its primary objective was to examine and develop measures to combat money laundering.

 After the 9/11 attacks on the US, the FATF expanded its mandate in 2001 to incorporate efforts to combat terrorist financing.

 In April 2012, it further added efforts to counter the financing of Weapons of Mass Destruction (WMD).

 The FATF issued a set of Forty Recommendations in 1990 to fight against money laundering. Later, in 2004, it published the 40+9 Recommendations, strengthening international standards for combating money laundering and terrorist financing.

Members: The FATF has 40 members, representing major financial centers globally. India has been a full member since 2010 and also part of its regional partners, the Asia Pacific Group (APG) and the Eurasian Group (EAG).

FATF suspended membership of the Russian Federation on 24 February 2023

To achieve global implementation of the FATF Recommendations, the FATF relies on a strong global network of FATF-Style Regional Bodies (FSRBs), in addition to its own 40 members. 

 The black and grey lists maintained by the Financial Action Task Force (FATF)  play a crucial role in assessing countries’ efforts to combat money laundering and terrorist financing.

The black list identifies countries or jurisdictions with serious strategic deficiencies in countering money laundering, terrorist financing, and proliferation financing.

The grey list includes countries actively working with the FATF to address strategic deficiencies.