Financial Action Task Force blacklist

FATF incentivizes stricter regulations through its public noncomplier list, which leads financial institutions to shift resources and services away from the countries on the blacklist.

This in turn motivates domestic economic and political actors in the listed countries to pressure their governments to introduce regulations that are compliant with the FATF.

[8] The term "non-cooperative" was criticized by some analysts as misleading, as a number of countries on the list simply lacked the infrastructure or resources to cope with relatively sophisticated financial criminals who tried to operate there.

[citation needed] Since 2008 the FATF has, at the behest of G20 leaders, installed a more analytical process for identifying jurisdictions deficient in their anti-money laundering and anti-terrorist financing regimes.

[4] One of the main objectives of the FATF is to establish norms and standards of "legal, regulatory and operational measures" to fight against money laundering, terrorist financing and other related threats to the security and integrity of the international financial system.

[4] In addition, the FATF also provides policy recommendations that meet international standards to countries for combating money laundering and the financing of terrorism and the proliferation of weapons of mass destruction.

FATF also monitors the situations of its members in establishing adequate measures and institutions to fight against money laundering and terrorist financing.

FATF also makes sure that it is aware of national-level vulnerabilities of its member states "with the aim of protecting the international financial system from misuse.

Further, FATF has serious concerns with the threat posed by DPRK's illicit activities related to the proliferation of weapons of mass destruction (WMDs) and its financing.

[37][38] Although its main focus is on tax crime, the OECD is also concerned with money laundering and has complemented the work carried out by the FATF.

[47] On 22 October 2008, at an OECD meeting in Paris, 17 countries led by France and Germany decided to draw up a new blacklist of tax havens.

It had been asked to investigate around 40 new tax havens where undeclared revenue was hidden and which hosted many of the non-regulated hedge funds that came under fire during the financial crisis of 2007–08.

[52] However, a June 2023 FATF report, claimed that Qatar has shown a government-wide effort to address ML/TF risks and to implement an effective targeted financial sanctions (TFS) regime.

[54] In March 2022, the FATF added the UAE to its grey list of jurisdictions subject to increased monitoring, as it claims that the country is non-cooperative in the global fight against money laundering and terror financing.