Financial Action Task Force : In News
India will host the FATF Private Sector Collaborative Forum 2025 in Mumbai, addressing global priorities such as payment transparency, financial inclusion, and digital financial system transformation.
- FATF is an intergovernmental policy-making and standard-setting body dedicated to combating money laundering and terrorist financing.
- Objective is to establish international standards and to develop and promote policies, both at national and international levels, to combat money laundering and the financing of terrorism.
- FATF develops and promotes policies across various countries and jurisdictions.
- It was established in 1989 during the G7 Summit in Paris in response to a growing concern about money laundering.
- In 2001, its mandate expanded to include terrorism financing.
- Headquarters: Paris,
- To become a member, a country must be considered strategically important (large population, large GDP, developed banking and insurance sector, etc.), must adhere to globally accepted financial standards, and be a participant in other important international organizations.
- FATF members include 39 countries, including the United States of America, India, China, Saudi Arabia, Britain, Germany, France, and the European Union (EU) as such.
- In addition, more than 180 countries worldwide are affiliated with the FATF through a network of FATF-style regional bodies (FSRBs).
- India became a member of FATF in India is also a member of two FATF Style Regional Bodies (FSRBs)-Asia Pacific Group (APG) and Eurasian Group of Combating Money Laundering and Financing of Terrorism (EAG).
- The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action.
- FATF regularly publishes reports that raise awareness about the latest money laundering, terrorist financing, and proliferation financing techniques so that countries and the private sector can take the necessary steps to mitigate these risks.
- The FATF Recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CFT) standard.
- Once a member, a country or organization must endorse and support the most recent FATF recommendations, commit to being evaluated by (and evaluating) other members.
- The FATF holds countries to account that do not comply with the FATF Standards.
- If a country repeatedly fails to implement FATF Standards, then it can be named a Jurisdiction under Increased Monitoring or a High-Risk Jurisdiction. These are often externally referred to as “the grey and black lists”.
