- What is it?: FATF is the global money laundering and terrorist financing watchdog set up in 1989.
- Launch: Launch by G7 countries at Paris.
- FATF Secretariat: Located at the OECD headquarters in Paris.
- Functions
- The FATF reviews money laundering and terrorist financing techniques and continuously strengthens its standards to address new risks, such as the regulation of virtual assets, which have spread as cryptocurrencies gain popularity.
- The FATF monitors countries to ensure they implement the FATF Standards fully and effectively and holds countries to account that do not comply.
- FATF Sessions:
- The FATF Plenary is the decision-making body of the FATF.
- It meets three times per 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.