Financial Action Task Force(FATF):
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It is an inter‐governmental policy making body.
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It aims to establish international standards for combating money laundering and terrorist financing.
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It was established in 1989 during the G7 Summit in Paris (France) to combat the growing problem of money laundering.
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It comprises over 39 countries.
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India is a member
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FATF Secretariat is housed at the headquarters of the OECD in Paris.
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Initially it was only dealing with developing policies to combat money laundering. But in 2001 its purpose was expanded to act against terrorism financing.
Objectives:
Set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
Listing by FATF:
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Grey List:
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Countries that are considered a safe haven for supporting terror funding and money laundering are put in the grey list.
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This inclusion serves as a warning to the country that it may enter the blacklist.
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The grey listing carries no legal sanctions. But it attracts economic sanctions and restricts a country’s access to international loans
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Black List:
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Countries known as Non-Cooperative are put in the blacklist. These countries support terror funding and money laundering activities.
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