Question map
Financial Action Task Force is: a (a) A wing under the Central Economic Intelligence Bureau b (b) A division of Enforcement Directorate c (c) A global money laundering and terrorist financing watchdog d (d) A UN Anti-Corruption Agency
Explanation
The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 by the G7 countries [2]. It serves as the global watchdog for anti-money laundering (AML) and countering the financing of terrorism (CFT) [1]. The FATF sets international standards, known as the FATF Recommendations, which aim to prevent illegal activities such as drug trafficking, human trafficking, and terrorism from exploiting the international financial system [2]. While India is a member and maintains a dedicated FATF Cell within its Department of Revenue, the FATF itself is an independent international body headquartered at the OECD in Paris, not a wing of the Central Economic Intelligence Bureau or the Enforcement Directorate [1]. It is also distinct from United Nations agencies, although it collaborates with the UN Office on Drugs and Crime to enhance global financial security.
Sources
- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > FINANCIAL ACTION TASK FORCE (FATE) > p. 281
- [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > FINANCIAL ACTION TASK FORCE (FATE) > p. 282