. With reference to Financial Action Task Force (FATF), consider the following statements: 1. It conducts regular peer-reviewed evaluations called Mutual Evaluations (ME) of countries to check their performance on standards prescribed by it.2.For countries under its Grey list, the FATF calls on members and non-members to apply enhanced due diligence..Which of the statements given above is/are correct? |ForumIAS

Q. . With reference to Financial Action Task Force (FATF), consider the following statements:
1.It conducts regular peer-reviewed evaluations called Mutual Evaluations (ME) of countries to check their performance on standards prescribed by it.
2.For countries under its Grey list, the FATF calls on members and non-members to apply enhanced due diligence..
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] .Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Statement 1 is correct: It conducts regular peer-reviewed evaluations called Mutual Evaluations (ME) of countries to check their performance on standards prescribed by it. The reviews are carried out by FATF and FATF-Style Regional Bodies (FSRBs), which then release Mutual Evaluation Reports (MERs).

Statement 2 is incorrect: For Grey list countries, the FAT does not tell other members to carry out due-diligence measures vis-a-vis the listed country but does tell them to consider the risks such countries possess.

For countries under Black list, the FATF calls on members and non-members to apply enhanced due diligence. In the most serious cases, members are told to apply counter-measuressuch as sanctions on the listed countries.

Source: Article

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS