The Financial Action Task Force (FATF)

General Information

The Financial Action Task Force (FATF) is an inter-governmental body that develops and promotes national and international strategies in the field of AML/ CFT. FATF was established by the G-7 Summit that was held in Paris in 1989.

The FATF currently comprises 37 member jurisdictions and 2 regional organizations.

Mission

The objectives of the FATF are to set standards for AML/CFT, independently evaluates the application of these standards by member countries and makes decisions that are binding on states. The FATF monitors the progress made by member countries in taking the necessary measures, reviews methods in the field of AML/CFT, promotes the adoption and application of appropriate measures globally, and cooperates with other international bodies involved in the fight against AML / CFT.

Recommendations

In April 1990, the FATF issued a report containing a set of Forty Recommendations, which were intended to provide a comprehensive plan of action needed to fight against ML/FT. 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. In October 2004 the FATF published a Ninth Special Recommendations, further strengthening the agreed international standards for combating money laundering and terrorist financing - the 40+9 Recommendations. In 2012, the FATF completed a thorough review of its standards and published the revised FATF Recommendations. (see http://www.fiu.az/uploads/content/docs/international_documents/fatf_standards.pdf)

Cooperation with Azerbaijan

Cooperation with the FATF - the inter-governmental body, which sets international standards on combating ML and TF is important in terms of establishing a strong and effective AML/CFT system in Azerbaijan.

In a public statement released by FATF in February 2010, it was recommended to improve national legislation on AML / CFT in Azerbaijan and strengthen cooperation with FATF and MONEYVAL to address the AML/CFT deficiencies. Following these recommendations, a new law was adopted in March 2010 to ensure that national legislation on AML / CFT is in line with FATF standards.

On September 7-8, 2010, the FATF and MONEYVAL conducted on-site visit to Azerbaijan to confirm that the process of implementing the required reforms and actions is underway to address deficiencies previously identified by the FATF.

The assessment team reviewed the progress in addressing deficiencies in AML / CFT system in the country, familiarized themselves with the work of the Financial Monitoring Service and held direct discussions with competent government agencies. Following the on-site visit, the assessment team submitted to FAFT a positive report reflecting Azerbaijan’s significant progress in improving its AML/CFT regime and addressing AML/CFT deficiencies.

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