Financial Action Task Force (FATF) changes grey listing criteria to focus on nations posing greater risk

Paris: The Financial Action Task Force (FATF) has announced that it was making major changes to the criteria to focus on those nations posing greater risks to the international financial system.

The changes made by the FATF will ensure the listing process better targets the nations that pose the greater risk to the international financial system and contributes to more adequate support to low-capacity nations, according to the statement. In a statement, the FATF said, “The FATF has made major changes to the criteria for putting countries on its lists to relieve pressures on least developed countries and focus on those countries posing greater risks to the international financial system.”

It further said, “The FATF identifies jurisdictions with strategic deficiencies in their system for fighting money laundering, terrorist financing and proliferation financing. The FATF, together with the relevant FATF-style Regional Body, if applicable, works with these countries via a peer-led process to close the loopholes that allow illegal financial flows, which in turn fuel life-destroying crimes, including abhorrent acts like human trafficking or child sexual exploitation, as well as acts of terror which by nature are meant to cause death and suffering.”

The global anti-money laundering watchdog noted that the impact of illicit financial flows is felt most strongly by the least developed nations as it impedes sustainable development.

Proceeds of crimes like tax evasion, corruption, and organized crime, divert billions of dollars annually away from essential public goods like education and health, according to the statement. Depriving criminals from their ill-gotten gains is important to help these countries building robust economies and societies.

In a statement, FATF said, “Under the revised criteria, jurisdictions will be prioritised for active review if they meet the referral criteria and are: (1) an FATF Member; (2) a country on the World Bank High-Income Countries list (excluding those with a financial sector of two or fewer banks); or (3) a country that has financial sector assets above USD 10 billion (measured by broad money).”(ANI)

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