Why is it in the news?

• FATF has released the “Asset Recovery Guidance and Best Practices” guidelines, which provide a comprehensive and updated framework to strengthen the global system for asset recovery against financial crimes.

Financial Action Task Force (FATF)

• What is it?: FATF is a global money laundering and terror financing watchdog setup in 1989.
• Launch: It is launched by G7 countries at Paris.
• Head Quarter: The FATF Secretariat is located at the OECD headquarters in Paris.
• Functions:
  • FATF’s main role is to review money laundering and terrorist financing techniques and improve its standards to address new risks, such as regulating virtual assets like cryptocurrencies.
  • FATF also monitors countries to ensure they fully implement the FATF Standards and takes action against those that do not comply.
• FATF Sessions:
  • The decision-making body of FATF is called the FATF Plenary, which meets three times a year.
• Membership:
  • It is a 39-member body representing most major financial centres in all parts of the globe.
  • India joined with ‘observer’ status in 2006 and became a full member of FATF in 2010.
• Listing:
  • The Grey List includes countries that are considered safe haven for supporting terror funding and money laundering.
  • The Black List includes Non-Cooperative Countries or Territories (NCCTs) that support terror funding and money laundering activities. As of now, Iran, North Korea and Myanmar are the three black listed countries.