G-20 leaders reaffirm full support for FATF’s efforts to combat money laundering, terrorist financing

G-20 leaders, including Prime Minister Narendra Modi, have reaffirmed their full support for the Financial Action Task Force and recognised that effective implementation of the measures put in place to combat money laundering, terrorist financing and proliferation is essential for building confidence in financial markets, ensuring a sustainable recovery and protecting the integrity of the international financial system. In the Rome Declaration issued on Sunday, the G20 leaders stressed the relevance of the risk-based approach of the global anti-money laundering and Paris-based terror financing watchdog’s recommendations with the aim to ensure legitimate cross-border payments and to promote financial inclusion.

“We reaffirm our full support for the Financial Action Task Force (FATF) and the Global Network and recognise that effective implementation of Anti-Money Laundering/Countering the Financing of Terrorism and Proliferation (AML/CFT/CPF) measures is essential for building confidence in financial markets, ensuring a sustainable recovery and protecting the integrity of the international financial system,” the declaration stated.

FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.

Earlier this month, the FATF announced that Pakistan will remain on its ‘grey list’ until it further demonstrates that action is being taken against Jamaat-ud-Dawah chief Hafiz Saeed and Jaish-e-Mohammed founder Masood Azhar who are listed as global terrorists by the United Nations. The FATF also placed Turkey, Jordan and Mali to its watch list.

Pakistan was placed on the grey list by the FATF in June, 2018 and was given a plan of action to complete it by October, 2019. Since then, the country continues to be in that list due to its failure to comply with the FATF mandates.

In the Rome Declaration, the G-20 nations confirmed their support for strengthening the FATF recommendations to improve beneficial ownership transparency and called on countries to fight money laundering from environmental crime, particularly by acting on the findings of the watchdog’s report.

“We reaffirm the commitments made by Finance Ministers and Central Bank Governors aimed at sustaining and strengthening the work of the FATF-Style Regional Bodies,” the declaration said.

The G20 nations also said that they will work towards enhancing confidence in the digital environment by improving internet safety and countering online abuse, hate speech, online violence and terrorism while protecting human rights and fundamental freedoms.

They renewed their commitment to zero tolerance for corruption in the public and private sectors and said that to achieve common goals in the global fight against corruption, they have adopted the 2022-2024 Anti-Corruption Action Plan.

“We are committed to fight any new and sophisticated forms of corruption. We endorse the G20 High-Level Principles on Corruption related to Organized Crime, on Tackling Corruption in Sport, and on Preventing and Combating Corruption in Emergencies, and adopt the G20 Anti-corruption Accountability Report. We reaffirm our commitment to deny safe haven to corruption offenders and their assets, in accordance with domestic laws and to combat transnational corruption,” the declaration stated.

The G20 is a leading global forum that brings together the world’s major economies. Its members account for more than 80 per cent of the global GDP, 75 per cent of global trade and 60 per cent of the population of the planet.