Topic– money-laundering and its prevention
6) Discuss the role of Final Action Task Force in combating money laundering and terror financing.(250 words)
Why this question
Recently in the wake of the Pulwama attack the FATF has criticized Pakistan for its role. In this context it is important to discuss about FATF, its mandate and its role.
Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail about the role of the FATF in preventing money laundering and terror financing across the world.
Structure of the answer
Introduction– write a few introductory lines about the FATF. E.g The Financial Action Task Force (FATF) was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering. In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
- Discuss about the objectives of the FATF. E.g
- 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.
- Discuss about the role played by FATF. E.g
- The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction.
- They form the basis for a co-ordinated response to these threats to the integrity of the financial system and help ensure a level playing field.
- First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003 and most recently in 2012 to ensure that they remain up to date and relevant, and they are intended to be of universal application.
- The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally.
- In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse etc.
Conclusion- based on your discussion, form a fair and a balanced conclusion on the given issue.