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    Question

    In the context of international financial regulation,

    the Financial Action Task Force (FATF) is primarily responsible for:
    A Supervising cross-border stock exchange operations Correct Answer Incorrect Answer
    B Promoting bilateral and multilateral trade agreements Correct Answer Incorrect Answer
    C Formulating global standards to combat money laundering, terrorist financing, and related threats Correct Answer Incorrect Answer
    D Setting international taxation rules for corporations Correct Answer Incorrect Answer
    E Providing grants and financial assistance to developing nations Correct Answer Incorrect Answer

    Solution

    • The Financial Action Task Force (FATF) is an inter-governmental policy-making body, established in 1989 by the G7 countries. • Its mandate is to set international standards aimed at preventing: o Money laundering (ML) o Terrorist financing (TF) o Proliferation financing (weapons of mass destruction funding) • FATF issues recommendations, which member countries adapt into their own laws and regulations. • It also maintains the “grey list” and “black list” of jurisdictions with strategic AML/CFT deficiencies. Thus, the FATF’s key role is to safeguard the global financial system by combating money laundering and terrorist financing.

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