About :- FATF is an inter-governmental body (est. 1989) that sets global standards to combat Money Laundering and Countering the Financing of Terrorism .
- Function: Monitors countries for compliance with its standards.
- Membership: Comprises 40 members , including two regional organisations (Gulf Cooperation Council, European Commission),India joined in 2010.
Monitoring Lists:-
- Grey List :- For: Countries with strategic ML/CTF deficiencies that have formally committed to resolving them.
- Impact: Faces heightened international financial scrutiny.
- Black List (High-Risk / Non-Cooperative): Countries with serious strategic deficiencies that fail to cooperate (e.g., North Korea, Iran, Myanmar).
- Impact: Subject to severe economic sanctions and denied aid from institutions like the IMF and World Bank.
