Money Laundering and Financing of Terrorism

​Financial Action Task Force  (FATF)

The Financial Action Task Force (FATF) is an independent inter-governmental body that draws up and promotes policies to protect the financial systems against money laundering, financing of terrorism and financing the proliferation of weapons of mass destruction.

FATF was incepted in 1989 at the G7 Summit Meeting in Paris in order to respond to the ever-growing concern on drug trafficking, the criminal activities related to same and the high proceeds derived from said activities.

In April 1990, the FATF issued 40 Recommendations for combating money laundering which would later become world standards on anti-money laundering measures and the basis for any assessment concerning preventing and combating money laundering policies which were recognised by the United Nations, European Council and European Union.

In February 2012, after the conclusion of the third stage of Mutual Assessment that FATF member countries underwent, said reviewed the Recommendations so as to increase the duties in situations of greater risk and to allow countries to decrease the intensity of said duties in situations where the risk was significantly lower.