- The Financial Action Task Force (FATF) 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 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
- In 2012, it added efforts to counter the financing of proliferation of weapons of mass destruction.
- Three decades after its, creation, in April 2019, FATF Ministers adopted a new, open-ended mandate for the FATF.
- The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
- FATF has two types of lists:
- Black List: Countries that are supporting terror funding and money laundering activities are placed in the Blacklist.
- Gray List: Those countries which are not considered as the safe heaven for supporting terror funding and money laundering; included in this list. The inclusion in this list is not as severe as blacklisted.