Which organization is responsible for setting global standards for anti-money laundering efforts?

The Financial Action Task Force (FATF) is recognized as the organization responsible for setting global standards for anti-money laundering (AML) efforts. Established in 1989, FATF is an intergovernmental body that develops policies to combat money laundering and terrorism financing. The organization provides a framework that member countries can implement to strengthen their national AML regimes, promoting consistency and effectiveness in the global fight against these financial crimes.

FATF recommendations are considered the international benchmark for AML measures, guiding countries in developing robust legal and regulatory frameworks. By establishing these standards, FATF ensures that nations adopt effective measures to detect and deter money laundering and related activities, enhancing international cooperation in this field. This unique role makes FATF integral to shaping the policies and practices that countries follow in their efforts to combat money laundering on a global scale.

In contrast, while the International Monetary Fund (IMF) and the World Bank have significant roles in promoting financial stability and development, their primary focus is not specifically on setting AML standards. They may support countries in their AML efforts but do not dictate the global framework. The European Union (EU) also has its own regulations regarding anti-money laundering; however, its scope is limited to member states, whereas FATF operates on