Why in news? The Financial Action Task Force (FATF) has suspended Russia’s membership over Moscow’s invasion of Ukraine.

Highlights:

• Russia has now been suspended, but it remains a member and be accountable for its obligation to implement the FATF Standards.
• FATF added South Africa to its “grey list” of countries under special scrutiny to implement standards to prevent money laundering and terrorism financing and took Morocco out of the grey list.

About FATF

• It is an intergovernmental organisation founded in 1989 on the initiative of the G7(Summit in paris) to develop policies to combat money laundering and to maintain certain interest
• Organization has 37 countries as full members , 2 regional organisations including European Commission and Gulf Cooperation Council
• In 2001, its mandate was expanded to include terrorism financing.
• The objectives 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
• It monitors progress in implementing its Recommendations through “peer reviews” (“mutual evaluations”) of member countries.

List

• Organization has maintained the FATF blacklist (formally called the “Call for action”) and the FATF greylist (formally called the “Other monitored jurisdictions”).