Financial action task force was established In 1989 by G.7 countries submit in Paris to curb the money laundering, later on, it expanded its mandate by adding to combating against terror financing.
The objective of FATF:-
- Curb money laundering
- Combat against terror financing
- Maintain the integrity of the financial system.
Role of FATF:-
- It provided various recommendation to world organizations to combat against any threat to the financial system.
- FATF also responded activity to threats coming to the financial integrity of any country.
- It also helps in implementing the legal and institutional mechanism which will fight against the Money laundering and terror financing.
- Monitor the process to necessary measures. Which are required to do away any menace to integrity to the financial system?
- FATF put countries into grey compliance to the norms in combating the desired objective.
Further, can put into a blacklist which put enormous pressure over the economy of a country.
- Collaborate with various world government to protect the international financial system from any misuse.
FATF is a very crucial organization in the present context to tackle any problem in the context of the financial system. World government should collaborate with FATF to achieve the desired goal and immune from any financial threat.