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Recently, the Financial Action Task Force (FATF), has added Turkey, along with Jordan and Mali, in its revised list of “jurisdictions under increased monitoring”. In this context, consider the following statements regarding the Financial Action Task Force (FATF):
  1. It was formed on the initiative of the World Bank to counter money laundering.
  2. Its mandate includes countering the financing of the proliferation of weapons of mass destruction.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Recently, the Financial Action Task Force (FATF), has added Turkey, al...
  • The FATF is an inter-governmental body that works to “set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system”. 
  • The Financial Action Task Force (FATF) was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering. Hence statement 1 is not correct. 
  • In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering. 
  • In April 2012, it added efforts to counter the financing of proliferation of weapons of mass destruction. Hence statement 2 is correct.
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Recently, the Financial Action Task Force (FATF), has added Turkey, along with Jordan and Mali, in its revised list of “jurisdictions under increased monitoring”. In this context, consider the following statements regarding the Financial Action Task Force (FATF): It was formed on the initiative of the World Bank to counter money laundering. Its mandate includes countering the financing of the proliferation of weapons of mass destruction.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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