Consider the following statements regarding the Financial Action Task Force FATF 1 The FATF is a pol...........

Economic Affairs World Bank and IMF

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Consider the following statements regarding the Financial Action Task Force (FATF):

1. The FATF is a 'policy-making body' which works for combating money laundering and terrorist financing.

2. It is an initiative of the World Bank and OECD to develop policies to combat money laundering.

3. The FATF consists of two regional organisations the EU and the Gulf Co-operation Council.

Which of the statements given above are correct?

1 and 2 only

2 and 3 only

1 and 3 only

All of the above

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Explanation:

- Statement 1: Correct. The FATF is a 'policy-making body' working to combat money laundering and terrorist financing.

- Statement 2: Incorrect. The FATF was not an initiative of the World Bank and OECD. It was established at the G7 Summit in 1989, though OECD hosts the secretariat.

- Statement 3: Incorrect. The FATF includes individual countries as members, along with two regional organisations (EU and GCC), but not only those; it has many member countries.

- Options:

- Option 1 (1 only): Reflects only correct statement.

- Option 2 (2 and 3 only): Both are incorrect.

- Option 3 (1 and 3 only): Statement 1 correct, 3 partly true but misleading.

- Option 4 (All of the above): Incorrect as only Statement 1 is fully correct.