Financial Action Task Force (FATF) recently suspended Russia’s membership.
About Financial Action Task Force (FATF):
- FATF is an inter-governmental policy-making and standard-setting body dedicated to combating money laundering and terrorist financing.
- Objective: To establish international standards, and to develop and promote policies, both at national and international levels, to combat money laundering and the financing of terrorism.
- It was established in 1989 during the G7 Summit in Paris to develop policies against money laundering.
- In 2001 its mandate expanded to include terrorism financing.
- Headquarters: Paris, France.
- FATF members include 39 countries, including the United States, India, China, Saudi Arabia, Britain, Germany, France, and the EU as such.
- India became a member of FATF in 2010.
- What are FATF 'grey list' and 'blacklist'? FATF has 2 types of lists:
- Black List: Countries knowns as Non-Cooperative Countries or Territories (NCCTs) are put on the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.
- Grey List: Countries that are considered a safe haven for supporting terror funding and money laundering are put on the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.
- Three countries North Korea, Iran, and Myanmar are currently in FATF’s blacklist.
- Consequences of being on the FATF blacklist:
- No financial aid is given to them by the International Monetary Fund (IMF), the World Bank, the Asian Development Bank (ADB) and the European Union (EU).
- They also face a number of international economic and financial restrictions and sanctions.
Q1) What is the G7 grouping?
The G7 is an informal grouping of seven of the world’s advanced economies, including Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union.The G7 is a forum designed for frank and open discussion between leaders, ministers and policy-makers.