This week, it was announced that Saudi Arabia is now the first Arab country to be granted full membership of the Financial Action Task Force (FATF), an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. According to Khaleej Times, this achievement was announced during the FATF’s annual general meeting in the United States, as the group celebrated the 30th anniversary of its first meeting held in Paris in 1989.
FATF, also known by its French name, Groupe d'Action Financière (GAFI), was founded initially to combat the growing problem of money, and then expanded its mandate in 2001 to include terrorism financing. According to the news site, Saudi Arabia received an invitation from FATF in 2015 to join as an "observer member,” more than 10 years since the Kingdom became a founding member of the MENA arm of the group in November 2004.
With Saudi Arabia’s new membership, the number of permanent members in the group is now 39, including permanent members of the Security Council and most G-20 countries, countries like Australia, Austria, Belgium, Canada, China, Japan, Singapore, the United Kingdom, and the United States. There are also 31 international and regional organizations, which are Associate Members or Observers of the FATF and participate in its work.
According to the group’s website, the policy-making body has developed a series of recommendations recognized as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction. They form the basis for a coordinated response to these threats to the integrity of the financial system and help ensure a level playing field. First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003 and most recently in 2012 to ensure that they remain up to date and relevant, and they are intended to be of universal application.
