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Financial Action Task Force (FATF)
Why is it in news?
- India questioned Pakistan’s commitment to fighting terrorism following reports that Jamaat-ud Dawa and its associate group Falah-I-Insaniyat Foundation are no longer on the list of banned organisations.
- Pakistani position of not extending the Presidential ordinance is a complete turnaround from its submission to the international Financial Action Task Force (FATF) that put it on a “greylist” earlier this year.
FATF
- It is an inter‐governmental policy making body
- It aims to establish international standards for combating money laundering and terrorist financing.
- It was established in 1989 during the G7 Summit in Paris (France) to combat the growing problem of money laundering.
- It comprises over 39 countries.
- India is a member.
- FATF Secretariat is housed at the headquarters of the OECD in Paris.
- Initially it was only dealing with developing policies to combat money laundering. But in 2001 its purpose was expanded to act against terrorism financing.
Objectives:
- 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.
- Functions:
- Set international standards to combat money laundering and terrorist financing.
- Assess and monitor compliance with the FATF standards.
- Conduct studies of money laundering and terrorist financing methods, trends and techniques.
- Respond to new and emerging threats, such as proliferation financing (used for promoting proliferation of chemical, biological and nuclear weapons)
Source
The Hindu