China elected as vice chair of FATF
China was elected as vice chair of Financial Action Task Force (FATF), a global body mandated to combat terror financing and money laundering. In its plenary meeting in Paris, FATF had placed Pakistan under “grey list” subject to direct monitoring and intense scrutiny by International Cooperation Review Group till June 2018 for compliance of Anti-Money Laundering and Combating Finance of Terrorism regulations. Pakistan was on the same list from 2012 to 2015.
Financial Action Task Force (FATF)
It is an inter‐governmental policy making body that aims to establish international standards for combating money laundering and terrorist financing. It was established in 1989 during the G7 Summit in Paris (France) to combat the growing problem of money laundering. It comprises over 39 member countries including India. FATF Secretariat is housed at the headquarters of the OECD in Paris. Initially, FATF was only dealing with developing policies to combat money laundering. But in 2001 its purpose was expanded to act against terrorism financing.
Mandate
FATF set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to integrity of international financial system.
Functions
- Set international standards to combat money laundering and terrorist financing.
- Assess and monitor compliance with the FATF standards.
- Conduct studies of money laundering and terrorist financing methods, trends and techniques.
- Respond to new and emerging threats, such as proliferation financing used for promoting proliferation of nuclear, chemical and biological weapons.
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Month: Current Affairs - February, 2018