Financial Action Task Force (FATF)
FATF an intergovernmental organization. Its task is to monitor money laundering, the proliferation of weapons of mass destruction and terror funding internationally. It was built in 1989 in Paris, the capital of France, on the initiative of 7 countries. In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering. It has a total of 39 member countries and regional organizations. The decision-making body of Financial Action Task Force is called FATF plenary. Its meeting is held three times in a year. In 2006, India joined as an observer. Since then it was working towards full membership. On 25 June 2010, India was included as the 34th member country of the FATE .
What FATF Do :
The objectives of the FATF are to 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.
The increased monitoring list of the FATF is called the grey list. This includes those countries which promote terror funding and money laundering. The inclusion of those countries in this list means that they are being warned that such cases should be stopped, failure to do so may result in them being included in the Black List, which is considered extremely serious.
Currently, Panama, Sri Lanka, Ethiopia, Bahasa, Botswana, Cambodia, Ghana, Panama, Syria, Tunisia, Yemen, Trinidad and Tobago are on the Grey List. Due to inclusion in the gray list, these countries have to face economic sanctions from international institutions (World Bank, IMF, Asian Development Bank etc.). Its international trade decreases and the economy weakens.
The FATF blacklist (officially known as the “Call for action” is the common shorthand description for the Financial Action Task Force list of “Non-Cooperative Countries or Territories” (NCCTs). Black list includes countries that fully and directly support terrorist funding and money laundering activities. The FATF blacklist has been issued by the FATF since 2000. As of 2 March 2021, North Korea and Iran are on this list.
President : The FATF President is a senior official appointed by the FATF Plenary from among its members. In April 2019, the revised Mandate extended the terms of the FATF Presidency to a two-year period. The term of the President begins on 1 July and ends on 30 June two years after assuming office.
T. Raja Kumar began a two-year term as President of the Financial Action Task Force on 1 July 2022. He succeeded Dr. Marcus Pleyer. Mr. Raja Kumar has rich leadership and operational experience, having held a wide range of senior leadership roles in the Ministry of Home Affairs in Singapore and the Singapore Police Force for over 35 years.
Asia/Pacific Group on Money Laundering (APG)
Asia/Pacific Group on Money Laundering is an inter-governmental body like FATF. The objective of APG is to implement international standards against money laundering, the financing of terrorism and financing the proliferation of weapons of mass destruction. APG consists of 41 member jurisdictions in the Asia-Pacific region.
Financial Action Task Force (FATF) Associate Members
As on 2021 there are 9 associate members of the FATF :
- Asia/Pacific Group on Money Laundering (APG)
- Caribbean Financial Action Task Force (CFATF)
- Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)
- Eurasian Group (EAG)
- Council of Europe Select Committee of Experts on the Evaluation of Anti-Money Laundering Measures (Moneyval, formerly PC-R-EV)
- Financial Action Task Force of Latin America (GAFILAT), formerly The Financial Action Task Force on Money Laundering in South America (GAFISUD)
- Inter-Governmental Action Group against Money Laundering in West Africa (GIABA)
- Middle East and North Africa Financial Action Task Force (MENAFATF)
- Task Force on Money Laundering in Central Africa (GABAC)