FATF-Financial Action Task Force established in Paris in 1989 is an intergovernmental body that frames and recommends international AML/CFT standards & policies for jurisdictions across the globe. FATF also provides guidelines and measures to combat proliferation financing. FATF consists of 39 member countries. Asian development Bank, IMF and BCBS (Basel Committee on Banking Supervision) are some of the FATF observer organizations.

So as to execute effective implementation of operational, legal components of AML/CFT directives internationally, FATF coordinates with FATF style regional bodies (FSRB s) besides its own member countries. There are 9 FSRB s which apart from networking within it selves also liaise with FATF from time to time thus playing a pivotal role in the policy making operations of FATF. The ultimate responsibility of each FSRB is to establish its own AML/CFT framework in their regional jurisdictions and the FSRB s implement policies and procedures based on the FATF 40 recommendations.

The nine FSRB s are Asia/Pacific Group on Money Laundering (APG), Caribbean Financial Action Task Force (CFATF) , Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) ,Eurasian Group (EAG) Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) ,Financial Action Task Force of Latin America (GAFILAT) (formerly known as Financial Action Task Force on Money Laundering in South America (GAFISUD)) ,Inter Governmental Action Group against Money Laundering in West Africa (GIABA) Middle East and North Africa Financial Action Task Force (MENAFATF) and Task Force on Money Laundering in Central Africa (GABAC).

The FSRB s are autonomous in structure however interdependent on each other in terms of mutual evaluation, standard setting and achieving financial crime compliance across jurisdictions. The objective behind FSRB s commitment to FATF governance and directives is to combat terror financing and money laundering and also to take appropriate actions to hand over such financial crime offenders to the concerned law enforcement authorities. The world has become a global village and increased co operation, supervision amongst the member counties, FSRB s and FATF would safeguard the international financial system comprehensively.


Author: Rajashree, MBA, CAMI

(PonSun AML Academy)