FATF (Financial Action Task Force) Countries 2023

The acronym for the Financial Action Task Force is FATF. It’s a collection of nations entrusted with keeping tabs on countries and organizations accused of engaging in unethical financial activities, such as money laundering and sponsoring terrorist organizations.

FATF member nations may advise how to avoid doing business with countries on the group’s “blacklist.”

Corruption within the government, weak financial regulations for avoiding fraudulent economic activity, and sponsorship of terrorist operations may lead to a country’s exclusion from the international community.

The FATF is made up of around 39 nations and non-country organizations. These nations are Argentina and Brazil in South America. Canada, the United States, & Mexico are all FATF members in North America.

As far as Europe goes, FATF includes the Austrian Federation and the European Union Member States of Belgium and Denmark, Germany, and the United Kingdom. A non-European nation, the European Commission, is a member of the FATF.

In Asia, China, Hong Kong, India, Israel, Japan, Malaysia, South Korea, the Russian Federation, Saudi Arabia, Singapore, and Turkey are all members of the FATF, while China contests this claim. An observer, Indonesia is located in Asia but is not a full organization member.

FATF members include the Gulf Cooperation Council, a group of oil-producing nations in the Persian Gulf, including Bahrain, Kuwait, and Oman.

Australia and New Zealand are members of the Australian continent, whereas South Africa is the sole African nation to join.

FATF has blacklisted several nations, including the so-called “tax havens,” where some individuals prefer to park their money to avoid paying taxes in the countries where they live. Governments in other nations have supported terrorist organizations.

If a nation is placed on the FATF’s watchlist and refuses to participate in improving its financial policies, it may be referred to as a “Non-Cooperative Country or Territory” (NCCT).

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Known as a popular tax haven, the Cayman Islands in the Caribbean have been classified as an NCCT by the FATF. The FATF is particularly concerned about North Korea, which is known for its secrecy and has little contact with other nations.

It is expected that only North Korea and Iran will remain on the FATF’s “blacklist” by the end of this decade. The government of Iran is suspected of providing financial support to terrorist groups.