Assessment of States' Adherence to the Recommendations ‎of the Financial Action Task Force (FATF) in Combating ‎Terrorism Financing

Kadkhodaei, Abbas Ali; Famil Zavar Jalali, Amir

doi:10.22059/jplsq.2021.322979.2765

Assessment of States' Adherence to the Recommendations ‎of the Financial Action Task Force (FATF) in Combating ‎Terrorism Financing

Document Type : Article

Authors

Abbas Ali Kadkhodaei ¹

Amir Famil Zavar Jalali ²

¹ Professor, Public Law department, Faculty of Law and Political Sciences, University of Tehran, ‎Tehran, Iran

² Ph. D in Public Law department ,Faculty of Law and Political Sciences, University of ‎Tehran, Tehran, Iran

https://doi.org/10.22059/jplsq.2021.322979.2765

Abstract

The Financial Action Task Force is currently the most active and dynamic entity in standardizing and creating new methods to block avenues for money laundering and terrorism financing. One of its most important actions is the preparation and presentation of forty recommendations that countries must adhere to within their financial systems to prevent any misuse of their financial and banking systems. Some of these recommendations have a history in Security Council resolutions or the Convention on Combating the Financing of Terrorism, while others are new. Although the recommendations of the Financial Action Task Force are non-binding and considered soft law, non-compliance by governments can lead to a lack of investor confidence in that government's financial system. Nevertheless, studies indicate that those recommendations from the Financial Action Task Force that contain common rules with what is outlined in the Convention on Combating the Financing of Terrorism or Security Council Chapter VII resolutions are more welcomed by governments. In contrast, governments have shown less adherence to recommendations that contain new rules and lack backing from binding mechanisms, which may indicate the reasons for governments' compliance with the recommendations of a non-binding entity.

Keywords

terrorist financing

‎ Convention for The ‎Suppression of The ‎Financing of Terrorism ‎‎1999

security council ‎resolution

FATF.‎

Subjects

Public International Law

Emglish
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