Why in News?
FATF meetings in Paris are set to discuss state sponsorship of terrorism, focusing on Pakistan-based entities like LeT and Jaish-e-Mohammed, which allegedly receive government support for funding, logistics, and reconstruction under misleading pretexts.
Description:
- Type: Intergovernmental policy-making & standard-setting body
- Objective: To set global standards and promote policies to combat
- Money Laundering (ML)
- Terrorism Financing (TF)
- Established: 1989, during the G7 Summit in Paris
- Expanded Mandate: 2001 – to include combating terrorist financing
- Headquarters: Paris, France
Membership
- Members: 39 countries + European Union (Includes India, USA, UK, China, France, Germany, Saudi Arabia, etc.)
- Affiliated countries: 180+ via FATF-style Regional Bodies (FSRBs)
- India’s Membership: Joined in 2010
- Member of APG (Asia Pacific Group)
- Member of EAG (Eurasian Group on ML & TF)
Functions & Role:
- Develops and monitors AML/CFT (Anti–Money Laundering & Counter–Terror Financing) policies
- Evaluates member compliance through Mutual Evaluation Reports
- Publishes reports on new ML/TF risks and trends
- Issues Recommendations – the global standard for AML/CFT
- Can label non-compliant nations as “jurisdictions under increased monitoring” (Grey List) or “high-risk jurisdictions” (Black List).
Black List (NCCTs):
- Countries supporting terror funding or money laundering
- Face economic & financial sanctions
- Denied financial aid from IMF, World Bank, ADB, EU, etc.
- Current (2025): North Korea, Iran, Myanmar
Grey List:
- Nations offering safe havens for ML/TF activities
- Warning stage before possible blacklisting
Key Facts:
| Feature | Details |
| Founded | 1989 (G7 Summit, Paris) |
| HQ | Paris, France |
| Members | 39 (incl. India, EU as a bloc) |
| India’s Entry | 2010 |
| Associated Regional Bodies | APG, EAG |
| Latest Host Event | FATF Private Sector Forum 2025, Mumbai |
| Current Blacklist | North Korea, Iran, Myanmar |
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