Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG)

Context

  • Recently, India has attended the virtual 32nd special Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) plenary meeting, under the aegis of the Financial Action Task Force.

About EAG

  • It is a regional body comprising nine countries: India, Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Belarus.
  • It is an associate member of the FATF.
  • Observer status has been granted to 15 countries and 23 international organizations.
  • The primary goal of the group is to ensure effective interaction and cooperation at the regional level and integration of EAG member-states into the international system of anti-money laundering and combating financing of terrorism in accordance with the recommendations of the FATF and the anti-money laundering and combating financing of terrorism standards of other international organizations, to which EAG member-states are party.

About Financial Action Task Force

  • The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 during the G7 Summit in Paris.
  • The objectives of the FATF are 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.
  • Its Secretariat is located at the Organisation for Economic Cooperation and Development(OECD) headquarters in Paris.
  • Member Countries:it consists of thirty-seven member jurisdictions.
  • India is one of the members.
  • The FATF Plenary is the decision making body of the FATF.It meets three times per year.

FATF has two lists:

1.Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.

2.Black List: Countries known as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.