Article

FATF: Task force to adopt ‘open-ended’ mandate starting in 2020.


Added on 17/04/2019

As published on regulationasia.com, Wednesday 17th April, 2019.

 

The new open-ended mandate recognises FATF’s leadership role and strengthens its capacity to respond to threats facing the financial system.

FATF (Financial Action Task Force) ministers have agreed to give the inter-governmental body a permanent, open-ended mandate in its role leading global action to counter money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction.

Members of FATF include representatives from 36 countries and two multinational bodies. So far 205 jurisdictions have committed to implementing its core AML/CFT standards and agreed to be evaluated by their peers.

The new open-ended mandate recognises the need for FATF to continue to lead decisive, coordinated and effective global action to counter the threats of the abuse of the financial system by criminals and terrorists, and strengthens its capacity to respond to these threats.

Among other things, the mandate states:

  • FATF objectives are to safeguard financial systems and the broader economy from threats of money laundering and the financing of terrorism;
  • FATF develops the international standards for combating money laundering;
  • FATF will continue to hold to account jurisdictions that fail to adequately implement its standards and encourage action to protect the financial system, while working with individual jurisdictions to address deficiencies; and
  • FATF has the necessary resources and support, and that all members contribute fully and fairly to its funding.

FATF members also agreed to greater ministerial engagement and support for FATF through regular and more frequent ministerial-level meetings (every two years), extend the term of the FATF Presidency, and to adopt a new funding model for the organisation.