What is FATF?

In this article we will understand how FATF works? What is FATF? Why FATF puts sanctions of any Countries? Also we will discuss about why Turkey is in Grey list along with Pakistan.

How does the FATF works?

What is FATF?

The Financial Action Task Force (FATF) is an organization that keep an eye on international money laundering and illegal activities funding. The international community sets international standards aimed at preventing these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about changes in national law and regulation in these areas.

More than 200 countries and authorities are committed to using them. The FATF has developed the FATF Recommendations, or FATF Standards, which ensure an integrated global response to prevent organized crime, corruption and other illegal activities. They help authorities track down money launderers, illegal activities, and other actions.

The FATF is reviewing money laundering and illegal activities financing strategies and continually tightening its standards to address new risks, such as the regulation of tangible assets, which have proliferated as cryptocurrencies gained momentum. The FATF monitors countries to ensure that they apply FATF Standards fully and effectively, and detects non-compliant countries.

Why FATF put sanctions of any Countries?

FATF already defined certain set of rules that could save the country from going in the FATF grey list. Some main rules are:

• Country should keep a check on money laundering
• Illegal funding
• Clues of Money bypreservation
• Not returning loans on time.

If any country, any country! violates any of the above mentioned rules/laws then the country would be given a warning then in the second stage the country would be there in grey list and if country is still violating the rules after the full check force then the country would be sent to Black List and various sanctions would be put on the country so that the economic crash could be achieved so that the Money Laundering could be identified easily.

Central Asian Country in grey list

A Central Asian Country was found to do Money Laundering cases in high amount also it was giving loan to a South Asian Country. This is the key reason because of which that Central Asian Country is in grey list. It is like that Central Asian Country is following each and every step of that South Asian Country recently that country's currency crashed and Pak rupee is already crashed because of poor economic conditions. Under the leadership of new president that Central Asian Country is touching grounds.

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