History of the FATF (1990-2010)

In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989.  Recognizing the threat posed to the banking system and to financial institutions, the G-7 Heads of State or Government and President of the European Commission convened the Task Force from the G-7 member States, the European Commission and eight other countries.

The Task Force was given the responsibility of examining money laundering techniques and trends, reviewing the action which had already been taken at a national or international level, and setting out the measures that still needed to be taken to combat money laundering.  In April 1990, less than one year after its creation, the FATF issued a report containing a set of Forty Recommendations, which provide a comprehensive plan of action needed to fight against money laundering.

In 2001, the development of standards in the fight against terrorist financing was added to the mission of the FATF.  In October 2001 the FATF issued the Eight Special Recommendations to deal with the issue of terrorist financing.  The continued evolution of money laundering techniques led the FATF to revise the FATF standards comprehensively in June 2003.  In October 2004 the FATF published a Ninth Special Recommendation, further strengthening the agreed international standards for combating money laundering and terrorist financing - the 40+9 Recommendations.

To learn more, read the publication 20 Years of the FATF Recommendations 1990-2010.

FATF's Focus on Corruption

The Financial Action Task Force (FATF) attaches a great importance to the fight against corruption: corruption has the potential to bring catastrophic harm to economic development, the fight against organized crime, and respect for the law and effective governance. The G20 called upon the FATF to address the problem of corruption in the framework of its work on combating money laundering and terrorist financing.  Corruption and money laundering are linked.  Corruption offences, such as bribery or theft of public funds, are generally committed for the purpose of obtaining private gain.  Money laundering is the process of concealing illicit gains that were generated from criminal activity.  The FATF Recommendations were designed to combat money laundering and terrorist financing, but when effectively implemented they can also help combat corruption, by:

·       safeguarding the integrity of the public sector;

·       protecting designated private sector institutions from abuse;

·       increasing transparency of the financial system;

·       facilitating the detection, investigation and prosecution of corruption and money laundering, and the recovery of stolen assets.

Reference Guide and Information note on the use of the FATF Recommendations to support the fight against Corruption – This information note sets out why compliance with the FATF Recommendations creates an environment in which it is more difficult for corruption to thrive undetected and unpunished.