The Financial Action Task Force (FATF) was established by the G-7 Summit held in Paris in which year?

The Financial Action Task Force (FATF) was officially established in 1989 during the G-7 Summit held in Paris. The late 1980s marked a period when global leaders became increasingly concerned about the rising threat of money laundering, which was strengthening organized crime networks around the world. At that time, the G-7 countries realized that money laundering could not be controlled by national laws alone; a coordinated international strategy was essential. As a result, the FATF was created with the mission of developing global policies to combat money laundering and ensure that financial systems remained transparent, secure, and free from criminal abuse.

The creation of the FATF in 1989 was a groundbreaking step because it introduced a unified global framework for countries to follow. FATF issued its first set of 40 Recommendations, which became the worldwide standard for anti-money laundering (AML) efforts. Over time, the mandate of FATF expanded beyond money laundering to include combating terrorist financing and financing of weapons of mass destruction, further increasing its importance in global financial regulation.

Today, FATF assessments, commonly known as gray list and black list classifications, influence a country’s economic credibility, foreign investment, and global trade relationships. That is why countries, including Pakistan, pay close attention to FATF guidelines and work actively to stay compliant. Understanding the year 1989 as FATF’s founding year is valuable for General Knowledge MCQs, especially in competitive exams where international organizations, economic policies, and global governance topics frequently appear.