G7 participants discussed the importance of tackling illicit financial flows and terrorist financing and committed to fully and effectively implement the FATF standards, including on designated non-financial businesses and professions. They strongly supported the work of the FATF in improving the implementation of international standards and welcomed and supported the ongoing work to strengthen the FATF’s institutional basis, governance and capacity.
The G7 created the FATF in 1989 to tackle money laundering. From the original 16 members, the FATF has since grown to a global network of 198 jurisdictions that have committed at the highest level to fully implement the FATF Recommendations on money laundering, terrorist financing and countering proliferation financing. In addition to setting the global standard, the FATF assesses how well countries have implemented them and researches the new and developing methods criminals and terrorists use to launder and raise their funds. FATF also identifies countries with strategic weaknesses that pose a risk to the international financial system. This initiative has been effective in forcing countries to take action, as failing to do so could increase the costs of doing business with identified countries and could deter foreign investment. The FATF has publicly named 61 countries with such deficiencies. 49 of these countries have since made the necessary reforms and been de-listed.
The FATF will continue to promote the effective implementation of its global standards on combating money laundering and terrorist financing, in close partnership with the G7, G20, UN, IMF, World Bank, Egmont Group of Financial Intelligence Units, FSB, OECD and other international bodies.
Participants at the G7 Finance Ministers and Central Bank Governors' Meetings. Back row, far right, FATF President Juan Manuel Vega-Serrano.