FINANCIAL ACTION TASK FORCE (FATF)
February 24, 2019 • Canon Times

FINANCIAL ACTION TASK FORCE

OBJECTIVES OF THE FINANCIAL ACTION TASK FORCE

- The Financial Action Task Force (FATF) is an intergovernmental body established in 1989 by the Ministers of its Member jurisdictions.

- The objectives of the FATF are to set standards and to 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. In collaboration with other international stakeholders, the FATF also works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

FUNCTIONS AND TASKS OF THE FATE

-  In order to fulfil its objectives, the FATF carries out the following tasks:

a) Identifying and analysing money laundering, terrorist financing and other threats to Identifurines the integrity of the financial system, including the methods and trends involved; examining the impact of measures designed to combat misuse of the international financial system; supporting national, regional and global threat and risk assessments;

b) Developing and refining the international standards for combating money laundering and the financing of terrorism and proliferation (the FATF Recommendations); 

c) Assessing and monitoring its Members, through 'peer reviews' ('mutual evaluations') and follow-up processes, to determine the degree of technical compliance, implementation and effectiveness of systems to combat money laundering and the financing of terrorism and proliferation; refining the standard assessment methodology and common procedures for conducting mutual evaluations and evaluation follow-up;

d) Identifying and engaging with high-risk, non co-operative jurisdictions and those with strategic deficiencies in their national regimes, and co-ordinating action to protect the integrity of the financial system against the threat posed by them;

e) Promoting full and effective implementation of the FATF Recommendations by all countries through the global network of FATF-style regional bodies (FSRBs) and international organisations; ensuring a clear understanding of the FATF standards and consistent application of mutual evaluation and follow-up processes throughout the FATF global network and strengthening the capacity of the FSRBs to assess and monitor their member countries;

f) Responding as necessary to significant new threats to the integrity of the financial system consistent with the needs identified by the international community, including the United Nations Security Council, the G-20 and the FATF itself; preparing guidanceas needed to facilitate implementation of relevant international obligations in a manner compatible with the FATF standards (e.g., continuing work on money laundering and other misuse of the financial system relating to corruption);

g) Assisting jurisdictions in implementing financial provisions of the United Nations Security Council resolutions on non-proliferation, assessing the degree of implementation and the effectiveness of these measures in accordance with the FATF mutual evaluation and follow-up process, and preparing guidance as needed to facilitate implementation of relevant international obligations in a manner compatible with the FATF standards.

h) Engaging and consulting with the private sector and civil society on matters related to the overall work of the FATF, including regular consultation with the private sector and through the consultative forum.

i) Undertaking any new tasks agreed by its Members in the course of its activities and within the framework of this Mandate; and taking on these new tasks only where it has a particular additional contribution to make while avoiding duplication of existing efforts elsewhere.

COMPOSITION AND PARTICIPATION 

- In the development of the FATF standards, guidance and other policy, the FATF consults widely amongst its Members, Associate Members, the International Monetary Fund (IMF), the World Bank and other observer organisations, as well as with other stakeholders including the private sector.

MEMBERS

FATF Members are the jurisdictions and organisations that have agreed to work together in the form of a task force toward the common objectives laid out in this mandate. 

FATE MEMBER JURISDICTIONS AND ORGANISATIONS are Argentina Italy Australia Japan Austria Kingdom of the Netherlands Belgium Luxembourg Brazil Mexico Canada New Zealand China Norway Denmark Portugal Argentina Italy Australia Japan Austria Kingdom of the Netherlands Belgium Luxembourg Brazil Mexico Canada New Zealand China Norway Denmark Portugal European Commission Republic of Korea Finland Russian Federation France Singapore Germany South Africa Greece Spain Gulf Co-operation Council Sweden Hong Kong, China Switzerland Iceland Turkey India United Kingdom Ireland United States.

FATE ASSOCIATE MEMBERS are Asia/Pacific Group on Money Laundering (APG) Caribbean Financial Action Task Force (CFATF) Eurasian Group on combating money laundering and financing of terrorism (EAG) Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) Financial Action Task Force on Money Laundering in South America (GAFISUD) Inter Governmental Action Group against Money Laundering in West Africa (GIABA) Middle East and North Africa Financial Action Task Force (MENAFATF)

 

-  Member jurisdictions commit to:

a) Endorse and implement the FATF Recommendations for combating money laundering and the financing of terrorism and proliferation, using where appropriate guidance and other policy endorsed by the FATF; and

b) Undergo and actively participate in systematic 'peer reviews' (mutual evaluations') and follow-up processes using the agreed assessment methodology and procedures; evaluations will be published by the FATF. 

-  Member organisations commit to:

a) Endorse and promote the effective implementation of the FATF Recommendations among their member jurisdictions; and

b) Support systematic 'peer reviews' ('mutual evaluations') and follow-up processes using the agreed assessment methodology and procedures.

INTERNATIONAL FINANCIAL INSTITUTIONS 

Within and in furtherance of their respective mandates to promote financial and economic stability and development, the International Monetary Fund and the World Bank play a special role in the development, promotion and dissemination of measures for combating money laundering and the financing of terrorism and other related threats. In particular, the IMF and the World Bank:

a) Contribute to the development of the FATF standards, guidance and other policy for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system;

b) Help to promote the effective implementation of the FATF Recommendations through country assessments conducted in the context of the Financial Sector Assessment Program using the agreed assessment methodology and promoting publication of detailed assessment reports; and;

c) Provide technical assistance and capacity building on combating money laundering, terrorist financing and other related threats.

OBSERVERS 

- The FATF works closely with other international organisations, such as the United Nations and the Egmont Group of Financial Intelligence Units, who participate as observers in the work of the FATF. Other bodies are eligible to participate in the work of the FATF as observers.

- The decision as to whether a body may participate as an observer to the FATF is taken by the Plenary. The eligibility of observers is reviewed periodically by the Plenary in light of FATF objectives. The current list of Observers is contained in Annex C.

- Observers have a stated role related to combating money laundering and the financing of terrorism and proliferation and commit to:

a) Endorse the FATF Recommendations, guidance and other policy for combating money laundering and the financing of terrorism and proliferation; and

b) Contribute to the work of the FATF in accordance with their respective legal frameworks and policies.

CURRENT LIST OF OBSERVERS are 

African Development Bank

Asian Development Bank

Basel Committee on Banking Supervision (BCBS)

Commonwealth Secretariat

Egmont Group of Financial Intelligence Units

European Bank for Reconstruction and Development (EBRD)

European Central Bank (ECB)

Eurojust Europol Group of International Finance Centre Supervisors (GIFCS) (formerly the Offshore Group of Banking Supervisors - OGBS]

Inter-American Development Bank (IDB)

International Association of Insurance Supervisors (IAIS)

International Monetary Fund (IMF)

International Organisation of Securities Commissions (IOSCO)

Interpol Organization of American States / Inter-American Committee Against Terrorism (OAS/CICTE)

Organization of American States / Inter-American Drug Abuse Control Commission (OAS/CICAD)

Organisation for Economic Co-operation and Development (OECD)

Task Force on Money Laundering in Central Africa (GABAC)

United Nations - . Office on Drugs and Crime (UNODC)

                           . Counter-Terrorism Committee Executive Directorate                     

                           -  The Al-Qaida Sanctions Committee (1267/1989 Committee)

The World Bank

World Customs Organization (WCO).