In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989.
The FATF is an inter-governmental body established by the Ministers of its Member jurisdictions. The objectives of the FATF are to 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. The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
The FATF has developed a series of recommendations (first issued in 1990) that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction.
- In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
- The FATF’s decision making body, the FATF Plenary, meets three times per year.
- The FATF currently comprises 35 member jurisdictions and 2 regional organisations. India is a member of the FATF. FATF’s headquarters are in Paris, France.