Part I The International Law of Tainted Money, 4 International Legal Sources III—FATF Recommendations

Subject(s):

Anti-terrorist financing — Money laundering — International financial system — Monetary system — Financial Action Taskforce (FATF)

This chapter looks at the role and development of the Financial Action Task Force (FAFT). The FAFT was formally established at the G7 Summit in Paris in July 1989 by the Heads of State or Government of the G7 countries and the President of the European Commission. The main concern motivating the establishment of the FATF was the proliferation of drug production and drug-related activities, including the laundering of drug proceeds. The G7 leaders understood that decisive action at the national and international levels would be needed to deal with this concern. The chapter looks at how the FAFT has changed since its founding. Today, the objectives of the FATF are to set the international standard, and promote effective implementation of measures, for combating money laundering, financing of terrorism, and other related threats to the integrity of the international financial system. It works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. It also monitors the progress of its members in implementing necessary measures.