Financial Action Task Force [FATF]

By : Neha Dhyani

Updated : Mar 8, 2023, 17:24

India has recently attended the 32nd plenary virtual meeting of the FATF [Financial Action Task Force] to discuss ways to curb the issues of terrorism financing and money laundering. The FATF is an inter-government body also called the global terror financing and money laundering watchdog.

Financial Action Task Force [FATF] Objective

The entity came into existence in 1989 with the objective of monitoring the activities of member countries and the measures taken to combat threats that could hamper the integrity of international finances. The Plenary is the FATF's decision-making body that holds meetings three times a year.

EAG or Eurasian Group on combating terrorism financing and money laundering operates under FATF and is made up of ten countries including India, Russia, China, and others.

FATF What You Should Know?

Financial Action Task Force or FATF consists of 39 member countries; India joined it in 2010. It has its headquarters located in Paris, France. Currently, the President of FATF is Dr Marcus Pleyer from Germany while its Executive Secretary is David Lewis from the UK.

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It has introduced a number of recommendations that take the form of global standards for fighting threats like terror financing, money laundering, and proliferation of weapons for mass destruction. These recommendations were first released in 1990 and revised multiple times later.

FATF International Body Types

The international body has two lists Grey List and Black List. The Grey List includes nations that don't have proper measures to prevent the incidents of money laundering and terror financing. It is a warning to the member that it can enter the blacklist. Pakistan had been on the Grey List for being unsuccessful at prosecuting the top terror groups.

The Black List contains countries that are regarded as ‘Non-Cooperative Countries or Territories' in the global fight against the threats. The list is updated regularly. Some nations on the list lack the infrastructure and methods necessary for getting involved in this fight.

The Grey List of FATF contains 23 countries with the latest additions of Myanmar, Turkey, Mali, and Jordan. According to the results of the Plenary held in 2021 in Paris, the updated grey list includes Turkey along with Yemen, Syria, Uganda, South Sudan, Panama, and more. These countries failed to prevent terror financing and money laundering and are on a global watchlist. Mauritius and Botswana were taken out of the grey list in this meet.

FATF is essentially a policy-making and regulatory agency that works with the governments of member countries to introduce reforms and legislation in the areas it focuses on. It discusses ways to curb the issues of terrorism financing and money laundering.

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Q.1. Why Turkey is on the FATF Grey list?

Turkey needs to address some serious issues of money laundering and terror financing in its real estate and banking sectors.

Q.2. How many countries are on the FATF Grey list?

There are 23 countries on the FATF grey list.

Q.3. How many times does FATF meet annually?

The Plenary is a body of FATF that meets thrice a year.

Q.4. Which countries are on the blacklist of FATF?

Currently, the FATF blacklist includes North Korea and Iran.