FINANCIAL ACTION TASK FORCE : ACHIEVEMENTS AND CHALLENGES

Task force FATF is the money laundering and terrorist financing watchdog.

- Hartosh Kumar Srivastava

As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. It monitors countries to ensure implementation of FATF standards fully and effectively.

Formation of FATF The FATF was established in 1989 by a group of seven (G-7) summit in Paris. The G-7 is an organisation made up of the world's seven largest advanced economy i.e. Canada, France, Germany, Italy Japan, the United Kingdom, and the United States. FATF's initial aim was only to examine and develop measures to combat money laundering. After the 9/11 terror attacks in the US in 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering. In 2012 it added efforts to counter the financing of proliferation of weapons of mass destruction.

Composition and participation of FATF

FATF members are the jurisdictions and organizations that have agreed to work together in the form of a task force towards a common objective laid out in this mandate. As of January 2021, FATF has 39 members including two regional organizations - the European Commission and the Gulf Cooperation council.

Associate Members of FATF

Associate members are FATF Style Regional Bodies ( FSRBs), as designated by the FATF, that participate in the work of the FATF, to achieve global implementation of the FATE recommendations the FATF relies on FSRBs in addition to it's own 39 members. The nine FSRBs have an essential role in promoting the effective implementation of the FATF recommendations in their member jurisdictions. Asia/Pacific group on money Laundering (APG) and Eurasian Group on combating money laundering and financing of terrorism ( EAG ) are examples of FATF Associate Members.

Focusing on participation of International institutions in the FATF