AML/KYC Certification Course | Financial Action Task Force | By Amanjyot Kaur

Summary

This video provides a comprehensive overview of the Financial Action Task Force (FATF), its role in combating money laundering and terrorism financing globally. Established in 1989 by the G7, FATF sets international standards for financial integrity and monitors member countries' compliance. It utilizes gray and black lists to track nations' progress and impose sanctions. The video also discusses India's involvement with FATF, its collaboration in fighting terrorism funding, and recent updates, such as the inclusion of UAE in the gray list. Viewers will gain valuable insights into FATF's operations, impact, and ongoing challenges in financial security.

Takeaways

• 😀 FATF (Financial Action Task Force) is an international organization established in 1989 to combat money laundering and terrorist financing.
• 😀 In 2001, FATF expanded its mandate to include combating terrorist financing, adding a significant focus to its global efforts.
• 😀 FATF’s main function is to develop global standards and promote policies to prevent money laundering and financing of terrorism.
• 😀 Countries that fail to meet FATF's standards are placed on either a **blacklist** (high-risk) or **graylist** (monitored for compliance).
• 😀 The UAE was recently added to the FATF's graylist for deficiencies in its measures against money laundering.
• 😀 Zimbabwe was removed from FATF's graylist, signaling progress in addressing money laundering risks in the country.
• 😀 FATF's secretariat is located at the OECD headquarters in Paris, which is responsible for coordinating FATF’s operations and activities.
• 😀 FATF works closely with other global organizations, such as the UN, the World Bank, and the IMF, to support international financial integrity.
• 😀 The FATF recommendations cover both legal and operational aspects of anti-money laundering and counter-financing of terrorism (AML/CFT) policies.
• 😀 FATF's global reach and standards play a crucial role in enhancing the financial security of countries worldwide by addressing illicit financial activities.

Q & A

What does FATF stand for?

FATF stands for the Financial Action Task Force.

When was the FATF established, and by which group of countries?

FATF was established in 1989 by the Group of Seven (G7) countries during a meeting in Paris.

What is the main objective of FATF?

The main objective of FATF is to combat money laundering and the financing of terrorism at the international level, ensuring the integrity of the global financial system.

What are the two main lists used by FATF to classify countries?

FATF uses two main lists: the Blacklist (high-risk jurisdictions requiring immediate action) and the Graylist (countries under increased monitoring).

What is the difference between the Blacklist and the Graylist of FATF?

Countries on the Blacklist are considered high-risk jurisdictions that require immediate action due to deficiencies in combating money laundering and terrorism financing. Countries on the Graylist are under increased monitoring and have committed to addressing their deficiencies but are at a higher risk of such activities.

In which year did FATF expand its mandate to include the combating of terrorist financing?

FATF expanded its mandate to include the combating of terrorist financing in 2001, following the September 11 attacks.

What is the significance of FATF in global financial regulations?

FATF plays a central role in setting global standards for combating money laundering and terrorism financing, assisting countries in implementing measures to prevent these activities, and evaluating the effectiveness of these measures.

Which organization does FATF collaborate with to combat terrorism financing?

FATF collaborates with regional bodies, other international organizations like the United Nations, and partners to combat terrorism financing and money laundering.

What is the FATF Plenary?

The FATF Plenary is the decision-making body of FATF, which meets three times a year to discuss and make decisions on reforms related to money laundering and terrorism financing.

Which country was recently added to the FATF Graylist for strategic deficiencies in countering money laundering?

The United Arab Emirates (UAE) was recently added to the FATF Graylist due to strategic deficiencies in countering money laundering.