AML/CFT

AML/CFT is expanded as Anti-Money Laundering/Combating the Financing of Terrorism. It is an international standard that has been established by the Financial Action Task Force (FATF) for fighting against money laundering and the financing of terrorism.

What is Money Laundering?

Money laundering is a process in which money earned from criminal activity like corruption, drug trafficking, tax evasion, etc. is disguised to hide their illicit origin.

What is the Financing of Terrorism?

Terrorist financing involves the collection or provision of funds with the intention of supporting terrorist acts or organizations. Funds may come from both legal as well as illicit sources. Funds may come from both legal as well as illicit sources.

Key Points

• ‘Vienna Convention’ and the ‘Palermo Convention’ have provisions related to Anti-money Laundering.
• ‘International Convention for the Suppression of the Financing of Terrorism’ is a notable convention regarding Terror Financing.

FATF shares the latest risk findings of Money Laundering and terror funding

In its recent appraisal, FATF shared risk findings and advanced technologies like text mining, privacy-preserving technology, online analytical processing, and social network analysis, to fight against AML/CFT. During the annual experts’ meet of FATF, it also informed about the solutions for risks of AML/CFT and its ongoing projects to the participants from various national and international bodies like IMF, the World Bank, United Nations, etc.  Experts shared views and thoughts related to AML/CFT in the meet. It was a four-day meet that was held from November 23 to 26 and was attended by around 400 experts.

FATF

Established in the year 1989, the Financial Action Task Force is an organization for combating the problem of money laundering. In the year 2001, it was expanded to include terror funding or financing of terrorism. FATF has 37 countries and 2 regional organizations as its member at present.