The Financial Action Task Force (FATF): A Key Player in Combating Money Laundering

Overview of the FATF

The Financial Action Task Force (FATF) was established in 1989 by the G7 as an inter-governmental body to develop policies and measures to combat money laundering. Over time, the FATF has expanded to include 34 member countries and two regional organizations.

Key Points on Country and International Standards

Effective anti-corruption regimes are essential for preventing money laundering, making it crucial to have:

• Global standards and mechanisms: Necessary to reduce and prevent money laundering effectively
• A global minimum standard: Required due to regulatory regimes operating from country to country often being piecemeal and widely ignored

Combating Money Laundering: A Multi-Faceted Approach

To stop money laundering, a combination of:

• Rigorous country regulations
• Related infrastructure
• Global regulations is necessary.

The FATF’s Role in Combating Money Laundering and Terrorist Financing

The FATF plays a crucial role in generating political will for national legislative and regulatory reforms to combat money laundering and terrorist financing. Its efforts aim to develop and promote policies and measures at both national and international levels to address these issues.