Financial Action Task Force (FATF)
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Questions and Answers

The FATF primarily focuses on combating wildlife crime and human rights violations.

False (B)

The FATF was established in June 1989 during a G20 summit in Paris, France.

False (B)

More than 200 countries and jurisdictions have committed to meeting FATF requirements to stop illicit financing.

True (A)

The FATF has 39 members, including countries and six member organizations.

<p>False (B)</p> Signup and view all the answers

The main reason for creating the FATF was the concern among international leaders about the threat of human trafficking.

<p>False (B)</p> Signup and view all the answers

If a country does not meet FATF requirements, no action can be taken against that country.

<p>False (B)</p> Signup and view all the answers

The Financial Action Task Force has only three key features.

<p>False (B)</p> Signup and view all the answers

The FATF recommendations are directly translated into national laws and regulations by member countries.

<p>False (B)</p> Signup and view all the answers

The FATF has 39 members and 9 Associate Member Organizations.

<p>True (A)</p> Signup and view all the answers

The FATF recommendations only apply to financial institutions.

<p>False (B)</p> Signup and view all the answers

The FATF groups conduct mutual assessments on each other's compliance with the FATF recommendations.

<p>True (A)</p> Signup and view all the answers

The FATF is primarily concerned with combating drug-related crimes.

<p>False (B)</p> Signup and view all the answers

Countries that fail to comply with FATF recommendations can face economic consequences.

<p>True (A)</p> Signup and view all the answers

The FATF only assesses the implementation of its recommendations by its member countries.

<p>False (B)</p> Signup and view all the answers

The FATF has a total of 248 member countries and organizations.

<p>False (B)</p> Signup and view all the answers

Match the country assessment process with its description:

<p>Risk assessment process = In-depth investigation of a country's compliance with FATF recommendations Observer role = Supervising the risk assessment process Group of experts from one country = Investigating a country from another group Observer from another group = Monitoring the risk assessment process</p> Signup and view all the answers

Match the features of the Financial Action Task Force with their descriptions:

<p>Feature 1 = Monitoring financial activities of criminals Feature 2 = Setting global standards and guidelines Feature 3 = Assessing countries' implementation of recommendations Feature 4 = Identifying high-risk countries for financial economic crime</p> Signup and view all the answers

Match the responsibilities in translating guidelines with their correct entities:

<p>Translation of FATF recommendations into national laws and regulations = Responsibility of member countries Translation of FATF recommendations into Europe Anti Money Laundering Directives = Responsibility of European Union members Translation of Europe Anti Money Laundering Directives into national laws and regulations = European Union members' responsibility Application of guidelines by financial institutions, companies, and professions under AML laws = Expectation stated in FATF recommendations</p> Signup and view all the answers

Match the consequences for countries failing to comply with FATF requirements with their descriptions:

<p>Economic stability impact = Consequences for non-compliant countries Inclusion in high-risk countries list = Placement on grey or black country list International pressure on countries = Ensuring efforts to evolve in combating financial crime Offering assistance and guidance to non-compliant countries = Aimed at compliance with FATF recommendations</p> Signup and view all the answers

Match the role of partners with their descriptions:

<p>United Nations and Financial Intelligence Units = Conducting research on evolving methods and trends in financial crime European Union members = Translating Europe AML Directives into national laws and regulations Financial Action Task Force partners = Assisting countries in understanding risks of Financial Economic Crime Companies, professions falling under AML laws = Expectations stated in FATF recommendations</p> Signup and view all the answers

Match the following characteristics with the Financial Action Task Force (FATF):

<p>Established in July 1989 = Creation reason: concern about money laundering and illegal activities Member countries include Canada, Japan, and the United States = Focus areas: money laundering, terrorist financing, preventing financing of weapons of mass destruction Member organizations include the European Commission and the Arab Gulf Cooperation Council = Primary focus: combating environmental crime financing and human rights violations More than 200 countries and jurisdictions are committed to meeting FATF requirements = Consequences for non-compliance: action can be taken by putting pressure on the country</p> Signup and view all the answers

Match the following statements with the Financial Action Task Force (FATF):

<p>G7 countries took the initiative to establish FATF = Number of current members: about 39, including countries and two member organizations Increasing globalization of financial activities led to concerns about illegal activities = Established during a G7 summit in Paris, France Criminals were using the international financial system for illegal activities = Number of current members organizations: two Threats included money laundering facilitated by international financial system = Foundation for tackling financial economic crime worldwide</p> Signup and view all the answers

Match the following organizations with their involvement in the Financial Action Task Force (FATF):

<p>G7 countries = Initiative to establish FATF European Commission and Arab Gulf Cooperation Council = Member organizations of FATF More than 200 countries and jurisdictions = Committed to meeting FATF requirements Financial criminals = Using international financial system for illegal activities</p> Signup and view all the answers

Match the following events with their relation to the Financial Action Task Force (FATF):

<p>Growing concern among international leaders = Reason for creating FATF Threat of money laundering and illegal activities = Basis for establishing FATF Increasing globalization of financial activities = Leading to concerns about illegal activities G7 summit in Paris, France = Location where FATF was established</p> Signup and view all the answers

Match the following areas of focus with the Financial Action Task Force (FATF):

<p>Combating money laundering and terrorist financing = Primary areas of focus for FATF Preventing financing of weapons of mass destruction = Additional area of focus for FATF Countering environmental crime financing and human rights violations = Expansion areas beyond money laundering and terrorist financing Putting pressure on non-compliant countries = Action taken against countries that do not meet FATF requirements</p> Signup and view all the answers

Match the following regions with their relation to the Financial Action Task Force (FATF):

<p>Canada, France, Germany, Italy, Japan, United Kingdom, United States = Countries taking initiative to establish FATF Paris, France = Location of G7 summit where FATF was created 39 members including countries and two organizations = Current number of members in FATF Environmental crime financing and human rights violations = Areas beyond traditional focus of money laundering and terrorist financing</p> Signup and view all the answers

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