Financial Action Task Force (FATF)

The 2025 Private Sector Collaborative Forum (PSCF) meeting of the Financial Action Task Force (FATF) from 25-27th March 2025 will be held in Mumbai.

It will be hosted by the Reserve Bank of India (RBI) in collaboration with the Department of Revenue, Union Ministry of Finance.

It primarily targets fighting against the financing of terrorism.
Meanwhile, it also aims to foster collaboration between the private sector and the civil society with the FATF member countries to strengthen global anti-money laundering (AML).

FATF is an intergovernmental apex global body that combats money laundering and terrorist financing.
It establishes global standards both at national and international levels on anti-money laundering (AML), combating the financing of terrorism (CFT), and proliferation financing.
Its headquarters is located in Paris, France.
Membership Criteria and India’s Role
- To qualify as a member of the FATF, a country must hold strategic importance, demonstrated by factors such as a large population, significant GDP, and a well-developed banking and insurance sector.
- Additionally, adherence to internationally accepted financial standards and active participation in key global organizations are essential prerequisites.
- The FATF currently has 39 member countries, including major economies like the United States, India, China, Saudi Arabia, the United Kingdom, Germany, France, and the European Union as a collective entity.
- Beyond its core members, the FATF collaborates with over 180 countries through a network of FATF-style regional bodies (FSRBs).
- India has been a member of the FATF since 2010 and also participates in two FSRBs—the Asia Pacific Group (APG) and the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG).

Which of the following statements about the Financial Action Task Force (FATF) is correct?

Answer: A) FATF has 39 member countries, including India.

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