Ministers of finance of Financial Action Task Force ("FATF") member countries agreed to make permanent the mandate for the FATF to protect the international financial system from money laundering and terrorist financing.
FATF Ministers reaffirmed "the central role of the FATF as the global international standard setter to take decisive, coordinated, and effective action against money laundering, terrorist financing, and proliferation financing related to weapons of mass destruction (WMD)."
The mandate states, among other things, that:
- the objectives of the FATF are to safeguard financial systems and the broader economy from threats of money laundering and the financing of terrorism;
- the FATF, among other things, develops the international standards for combating money laundering;
- the FATF will "continue to hold to account jurisdictions that fail to adequately implement the FATF standards and encourage action to protect the financial system, while working with these countries to address their deficiencies";
- the FATF has the necessary resources and support, and that all members "contribute fully and fairly to its funding"; and
- the Ministers meet every two years "to ensure their governments' commitment to implementing the FATF's mandate."
Commentary / Christian Larson
What was once a temporary task force is now a permanent establishment that relies on regular political buy-in and international peer pressure to achieve its goals. Apart from putting into writing expectations about FATF's longevity, the new mandate includes governance changes such as extending the term of the president and convening minister-level meetings more frequently - all of which is intended to reinforce the organization's status as the global standard-setter for anti-money laundering.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.