The Financial Action Task Force has played a very crucial in fighting with the menace of money laundering. Elaborate.

Financial action task force is an intergovernmental organisation started by G7. It is headquartered in Paris and its secretariat services are provided by OECD.

Features:

  • Prevent the money laundering, state sponsoring of terror, and terror financing.
  • Ensures a economic order, that is free of smuggling, human trafficking and other social menace.
  • Works through its regional bodies, such as Asia Pacific working group.
  • Based on objective criteria, it puts countries on either a grey list or a black list, as per their activities.
  • Only Iran and North Korea are on the blacklist.
  • Pakistan has been put on the grey list and faces heavy sanctions, if it doesn’t show resolve to stop state sponsoring of terror.
  • Acts as repository of Information and best practices. Liaisons with Interpol and other national Agencies such as CBI.
  • Provides training, research and assistance to world bodies in fighting the menace of money laundering.
  • Comments on latest modus operandi of criminals.
  • IT can sanction individuals and countries, if violations are substantial.

India being an active member of FATF, has contributed a lot to success of this organisation.

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