The Financial Action Task Force (FATF)

The FATF is an international organization that combats money laundering and terrorist financing. This article provides an overview of some of the key areas of work for the FATF.

Areas of Work for the FATF

1. Mutual Evaluations

Assessing how well countries implement anti-money laundering and counter-terrorist financing (AML/CFT) measures.
Evaluating technical compliance with FATF recommendations.
Assessing the effectiveness of AML/CFT systems.

2. FATF Recommendations

Set of guidelines for countries to prevent and detect money laundering and terrorist financing.
Covers issues such as customer due diligence, politically exposed persons, wire transfers, and beneficial ownership.

3. High-risk and Other Monitored Jurisdictions

Countries not fully implementing AML/CFT measures.
Regularly updated list of jurisdictions that may pose a money laundering or terrorist financing risk.

4. Beneficial Ownership

Identifying who owns a legal entity.
Ensuring availability of ownership information to authorities.

5. Corruption and Asset Recovery

Evaluating ability to detect and prosecute corrupt officials.
Recovering stolen assets.

6. Digitalisation and Virtual Assets

Guidelines for preventing money laundering and terrorist financing through virtual assets.
Includes cryptocurrencies and other digital payment methods.

7. Terrorist Financing

Focus on preventing terrorist financing.
Identifying sources of funding for terrorists.
Disrupting financing networks.

8. Proliferation Financing

Preventing financing of weapons of mass destruction and other sensitive technologies.

9. Events and Assessments

Evaluating implementation of AML/CFT measures by members.
Sharing best practices.

10. Publications and Calendars

Detailing all FATF activities and initiatives.

Conclusion

This is just an overview, and each area has specific recommendations and actions associated with it. For more information, please refer to the FATF’s publications and calendars.