Financial Action Task Force (FATF)
Context: The Indian authorities are planning to apprise the Financial Action Task Force (FATF) of the latest evidence related to the terror bases in Pakistan that were destroyed by the defence forces during the precision attacks as part of Operation Sindoor, in the aftermath of the Pahalgam terror attack.
Important Pointers:
Established: In 1989 by the G-7 Summit in Paris, France.
Members:
38 countries (including India since 2010)
Russia’s membership suspended
FATF-Style Regional Bodies (FSRBs): 9 regional bodies that promote FATF standards globally.
Functions:
Global Watchdog: Oversees money laundering, terrorist financing, and proliferation financing threats.
Standard Setter: Develops international recommendations for financial and non-financial sectors.
Supports Financial Inclusion: Promotes bringing people into the formal financial system to allow better monitoring.
Project on Unintended Consequences: Focuses on risks like financial exclusion caused by over-regulation.
Grey List and Black List:
Grey List (Increased Monitoring): Countries with strategic deficiencies but committed to reform within a time-bound plan.
Black List (Call for Action): Countries with serious strategic failures; subject to enhanced due diligence and possibly counter-measures; North Korea, Iran, and Myanmar, are currently on FATF’s blacklist.