FATF

Why it matters

• It serves as the global money laundering and terrorist financing watchdog by establishing international standards known as the FATF Recommendations.
• It conducts peer reviews, known as mutual evaluations, to assess the compliance of member jurisdictions with its standards.
• It maintains lists of jurisdictions with strategic deficiencies, which influences international capital flows and the risk assessment profiles of global financial institutions.
• It facilitates international cooperation and information sharing to disrupt illicit financial networks that transcend national borders.

How it is asked

Focus on the FATF's role in global financial governance, the implications of being placed on the 'Grey' or 'Black' lists for a nation's economy, and the relationship between FATF standards and the broader international efforts to curb transnational organized crime.