Question map
Consider the following statements about Financial Action Task Force (FATF) : 1. It is an Inter Governmental body that devises policies to combat money laundering and terrorist financing. 2. India is a full fledged member of FATF. 3. FATF membership will enable India to access information on suspcct accounts in nations such as Switzerland and UK. Which of the statements given above is/ are correct ?
Explanation
The Financial Action Task Force (FATF) is an independent inter-governmental body established in 1989 to develop and promote policies to combat money laundering and terrorist financing [c1][t3]. Statement 1 is correct as it accurately describes FATF's primary mandate. Statement 2 is also correct; India joined as an observer in 2006 and was admitted as a full-fledged member in June 2010 [c2][t1][t2]. Statement 3 is incorrect because FATF is a policy-making and standard-setting body, not an investigative agency with enforcement powers [t5]. It does not provide direct access to individual bank accounts in member nations like the UK or Switzerland. Such information exchange is typically governed by bilateral Mutual Legal Assistance Treaties (MLATs) or Tax Information Exchange Agreements (TIEAs), rather than FATF membership itself, which focuses on compliance with global AML/CFT standards [t1][t3].
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
- [3] http://www.dea.gov.in/press-release/indias-membership-financial-action-task-force