Financial Action Task Force is:

The correct answer is  a global money laundering and terrorist financing watchdog.

Key PointsFinancial Action Task Force (FATF)

• The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Group of Seven (G7) countries.
• Its primary objective is to set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
• The FATF is known as the global money laundering and terrorist financing watchdog because it monitors countries' progress in implementing the FATF Recommendations.
• The FATF has developed a series of Recommendations that are recognized as the international standard for combating money laundering and the financing of terrorism and proliferation of weapons of mass destruction.
• The FATF conducts regular evaluations of its member countries to ensure they comply with its standards and can take actions such as placing non-compliant countries on a grey list or blacklist.
• The headquarters of FATF is located in Paris, France.

Additional Information

• Central Economic Intelligence Bureau (CEIB):
  • The CEIB is an apex intelligence agency under the Department of Revenue in the Ministry of Finance, Government of India.
  • It is responsible for coordinating and strengthening the intelligence gathering activities of various agencies including Income Tax, Customs, and Enforcement Directorate.
• Enforcement Directorate (ED):
  • The ED is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India.
  • Its primary objective is the enforcement of two key laws: the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA).
• United Nations (UN) Anti-Corruption Agency:
  • The United Nations Office on Drugs and Crime (UNODC) is the primary agency responsible for addressing issues related to drugs, crime, and terrorism, including anti-corruption initiatives.
  • The UNODC assists countries in implementing the United Nations Convention against Corruption (UNCAC).