FATF - Financial Action Task Force
The intergovernmental body that sets the global standard for AML, CFT and counter-proliferation-financing - its 40 Recommendations underpin almost every national AML framework.
What it is
The Financial Action Task Force (FATF) is the intergovernmental body, founded in 1989 at the G7 Paris Summit, that sets international standards for anti-money laundering, counter-financing of terrorism and counter-proliferation-financing. Its outputs are the 40 Recommendations, the Interpretive Notes, and a stream of Updated Guidance documents on specific risks.
Membership and reach
FATF has 40 members (38 jurisdictions plus the EU Commission and GCC), and operates through 9 FATF-Style Regional Bodies (MONEYVAL, GAFILAT, APG, etc.) that effectively extend the reach to over 200 jurisdictions.
Mutual Evaluations
FATF conducts on-cycle Mutual Evaluations of each member's AML/CFT system, assessing technical compliance with the 40 Recommendations and effectiveness against 11 Immediate Outcomes. Poor evaluation outcomes can lead to grey-listing or, exceptionally, black-listing - with material correspondent-banking and capital-flow consequences.
Why it matters in day-to-day compliance
- Almost every national AML rule traces back to a specific FATF Recommendation.
- The FATF grey/blacklists feed directly into the EU high-risk-third-country list, which automatically triggers EDD.
- FATF guidance on VASPs, the Travel Rule and DeFi sets the supervisory expectation for crypto businesses globally.