what is fatf

The Financial Action Task Force (FATF) is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system. FATF is a "policy-making body" that works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. The objectives of 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 39 members as of 2023. The organization cannot impose sanctions or enforce its recommendations, but its recommendations carry significant weight and are often adopted by member countries. FATF leads global action to tackle money laundering, terrorist financing, and proliferation financing. The organization researches how money laundering and terrorist financing works, sets global standards, and promotes effective implementation of legal, regulatory, and operational measures to combat these issues. The US delegation to the FATF is chaired by members of the TFI staff, and it has been an important organization resource in centralizing efforts to combat money laundering and terrorist financing.