What Is FATF An International Organization To Eradicate Terrorism Financing, Who Are The Members?

What is FATF (Freepic)

YOGYAKARTA - Indonesia is officially part of the 40th Financial Action Task Force (FATF). This news was conveyed by President Jokowi online broadcast on the Presidential Secretariat's YouTube. So what is FATF and how important is its participation?

The acceptance of Indonesia as a member of the FATF was the result of negotiations in Paris at the end of last October. The membership status was obtained after going through a series of tests, from an on-site visit mutual evacuation review (MER) by the FATF team in July-August in 2020 and a review at the Plenary Meeting in June 2023.

President Jokowi said that membership plays an important role in increasing positive perceptions of the country's financial system. However, there are still many people who do not know what FATF is as an international organization.

FATF is an international organization focused on global efforts to eradicate money laundering, financing terrorism, and financing for the proliferation of weapons of mass destruction. The organization was founded in 1989 and centered in Paris, France.

FATF is an intergovernmental agency tasked with overseeing global terrorist money laundering and financing. FATF sets international standards whose goal is to prevent these illegal activities and the impact of their losses on the community.

FATF seeks to build or produce political will in order to realize legislative reform and national regulations in these areas. The existence of FATF is part of a coordinated global response and effort to prevent organized crime, terrorism, and corruption.

STAFF also set international standards to ensure national authorities are able to effectively address illicit funding related to drug trafficking, illicit arms trafficking, cyber fraud, and other serious crimes.

STAFF members consisting of more than 200 countries and jurisdictions have committed to implementing FATF standards. Indonesia joins the 40th permanent member of the FATF, following two neighboring countries that first joined Singapore and Malaysia.

The following is a list of FATF permanent members:

FATF has a number of recommendations as a comprehensive framework to assist countries in overcoming the flow of dark funds. The recommendation also contains a strong legal framework, regulations and operational measures to ensure national authorities.

The move was taken as an effective measure in detecting and preventing financial flows that trigger crime and terrorism, as well as punishing the parties responsible for the illegal act.

The following are some FATF recommendations that are divided into seven different fields:

FATF also makes the best practice guidelines and papers on various issues, to help countries implement their standards.

That is the review of what FATF is and its function as an international organization. Indonesia's membership in the FATF has a positive impact on the credibility of the country's economy, increasing the positive perception of the financial system and economic growth.

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