Q. With reference to the Financial Action Task Force (FATF), consider the following statements:
1.It is an inter-governmental body established to set standards and promote effective implementation of measures to combat money laundering.
2.International tax evasion is one of the focus areas of the FATF’s recommendations.
3.Red List and Blue List are maintained by the FATF to identify countries with strategic deficiencies in their anti-money laundering and counter-terrorism financing regimes.
How many of the statements given above are correct?
Answer: A
Notes:
Explanation –
Statement 1 is correct. The FATF is an inter-governmental body created to set standards and promote effective implementation of measures to combat money laundering, terrorist financing, and other related threats.
Statements 2 and 3 are incorrect. While the FATF’s recommendations cover a wide range of financial crimes, including money laundering and terrorist financing, international tax evasion is not one of its primary focus areas. The FATF maintains a “black list” (High-Risk Jurisdictions subject to a Call for Action) and a “grey list” (Jurisdictions Under Increased Monitoring) to identify countries with deficiencies in their anti-money laundering and counter-terrorism financing regimes.
Source: AIR
