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.
The Financial Action Task Force (FATF) is the international group that sets rules for the fight against funding terrorism and laundering money. It was set up in 1989 at a meeting of the Group of Seven (G-7) in Paris. At the summit, it was agreed that money laundering was becoming a bigger threat to the banking system and financial institutions, so the FATF was created to come up with and promote national and international policies that would help get rid of this threat. FATF Recommendations, also called FATF Standards, make sure that there is a coordinated global response to stop organised crime, corruption, and terrorism. They help the police find the money of people who sell illegal drugs, trafficking people, and do other bad things. FATF wants to invite countries to join that follow these recommendations.