Financial Action Task Force – New Member, Aim, Functions 25/06/2019 – Posted in: Daily News

FINANCIAL ACTION TASK FORCE

 

For: Mains

Topics covered: FATF, New permanent member, Aim, Functions

 

News Flash

Saudi Arabia has become the first Arab country to be granted full membership of the Financial Action Task Force (FATF).

  • The decision was a tool during the group’s annual meeting in Orlando, Florida on 21st June.

 

Background

Saudi Arabia which had received an invitation from the FATF at the beginning of 2015 to join as an “observer member”.

Saudi Arabia had been a founding member of the Middle East and North Africa (MENA) arm of the group since November 2004, and its full membership came after it was reported the kingdom had made “tangible progress” and for its efforts in implementing the FATF’s guidelines.

MENA group is responsible for issuing international standards, policies and best practices to combat money laundering, terrorist financing, and proliferation.

 

Financial Action Task Force

  • In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989.
  • Recognising the threat posed to the banking system and to financial institutions, the G-7 Heads of State or Government and President of the European Commission convened the Task Force from the G-7 member States, the European Commission, and eight other countries.
  • During 1991 and 1992, the FATF expanded its membership from the original 16 to 28 members. In 2000 the FATF expanded to 31 members and has since expanded to its current 39 members.
  • The objectives of the FATF are to set standards and 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.
  • The FATF is, therefore, a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
  • The FATF’s decision-making body, the FATF Plenary, meets three times per year.

 

Source: FATF

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