Published: 3rd Mar, 2023
Context
Global financial crime watchdog Financial Action Task Force (FATF) suspended Russia's membership for Ukraine war and violation of the organisation's principles.
About
- FATF mentioned that Russia has done a gross violation of the commitment to international cooperation and mutual respect.
- The FATF added South Africa to its "grey list" of countries under special scrutiny to implement standards to prevent money laundering and terrorism financing.
- It also took Morocco out of the grey list.
The Financial Action Task Force (FATF):
- FATF members include 39 countries, including the United States, India, China, Saudi Arabia as well as European countries such as Britain, Germany and France and the EU as such.
- Ukraine is not a member.
- It was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering.
- In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
- Since its inception, the FATF has operated under a fixed life span, requiring a specific decision by its Ministers to continue.
- Its secretariat is housed administratively at the OECD.
Criteria for FATF membership:
- The FATF-Style regional Bodies (FSRB) should be a regional group consisting of at minimum 5 – 6 member jurisdictions.
- The FSRB should be able to consider membership and observership applications of FATF members and observers, of other FSRBs, and of other FSRB members and observers that are active in its region and that otherwise meet the FSRBs membership or observership criteria.
- The members of the body should agree to implement the FATF Recommendations within a reasonable timeframe.
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