Topics Covered: Important International institutions, agencies and fora, their structure, mandate.
Financial Action Task Force (FATF):
Why in News?
FATF recently held its annual joint experts’ meet.
- It was attended by participants from various government agencies all over the world and international bodies such as the United Nations, the International Monetary Fund, the World Bank and Interpol.
- The FATF said it attaches great importance to effective information sharing, which is one of the cornerstones of a well-functioning AML/CFT [Anti-Money Laundering/Combating the Financing of Terrorism] framework.
About FATF:
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 on the initiative of the G7.
- It is a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in various areas.
- The FATF Secretariat is housed at the OECD headquarters in Paris.
Roles and functions:
- Initially it was established 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.
- In April 2012, it added efforts to counter the financing of proliferation of weapons of mass destruction.
Composition:
The FATF currently comprises 37 member jurisdictions and 2 regional organisations, representing most major financial centres in all parts of the globe. It also has observers and associate members.
InstaLinks:
Prelims Link:
- G7 vs G8 vs G20.
- Black vs Grey list.
- Are FATF’s decisions binding on member countries?
- Who heads the FATF?
- Where is its secretariat?
Mains Link:
What is the mandate and objectives of the Financial Action Task Force? Discuss.
Sources: the Hindu.
