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The Financial Action Task Force (FATF) is a group of governments that work together to make policy. Its goal is to set international standards and create and promote policies at both the national and international levels to stop money laundering and the financing of terrorism.
Process and requirements for becoming a FATF member
Step 1: Engaging with the country and granting observership: The country should give a written commitment at the political or ministerial level
Step 2: Doing a mutual evaluation, agreeing on an action plan, and granting membership.
The FATF Recommendations outline a complete and consistent set of measures that countries should take to stop money laundering, funding for financing, and financing for the spread of weapons of mass destruction. Countries have different legal, administrative, and operational systems, as well as different financial systems. Because of this, they can’t all take the same measures to stop these threats.