Financial Action Task Force (FATF) Explained
The Financial Action Task Force (FATF) is an intergovernmental body that sets standards to combat money laundering, terror financing and other threats to the financial system. It was established in 1989.
The Financial Action Task Force (FATF) is an intergovernmental body that sets standards to combat money laundering, terror financing and other threats to the financial system. It was established in 1989.
Standards and lists
FATF issues recommendations that countries are expected to implement. It maintains a 'grey list' (jurisdictions under increased monitoring) and a 'black list' (high-risk jurisdictions).
Significance
Being placed on the FATF grey or black list affects a country's access to global finance, giving FATF significant influence.
Why it matters for UPSC
FATF's mandate and its grey/black lists are commonly tested IR and security current-affairs topics.
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What does FATF combat?
Money laundering, terror financing and related threats to the financial system.
What is the FATF grey list?
A list of jurisdictions under increased monitoring for deficiencies in tackling money laundering and terror financing.