The Financial Action Task Force on Money Laundering is composed of 35 member countries and territories and two regional organizations and was organized to develop and promote policies to combat money laundering and terrorist financing, referred to as anti-money laundering/combatting the financing of terrorism (AML/CFT) measures. The FATF relies on a combination of annual self-assessments and periodic mutual evaluations that are completed by a team of FATF experts to provide information and to assess the compliance of its members to the FATF guidelines. FATF has no enforcement capability, but can suspend member countries that fail to comply on a timely basis with its guidelines. For instance, the FATF warned Turkey in early 2013 that its membership would be suspended unless it became more aggressive in criminalizing money laundering. The FATF is housed at the headquarters of the Organization for Economic Cooperation and Development (OECD) in Paris and occasionally uses some OECD staff, but the FATF is not part of the OECD. The presidency of the FATF is a one-year appointed position, currently held by Mr. Juan Manuel Vega-Serrano from Spain, who will serve through June 30, 2017, when Mr. Santiago Otamendi of Argentina will assume the presidency. At the ministerial meeting in April 2012, the member countries renewed the FATF's mandate through December 31, 2020. The FATF focuses on six key areas that are intended to reduce the potential for the abuse of financial systems and financial crimes. FATF Recommendations . The FATF issued its Forty Recommendations to serve as global standards to protect the integrity of the international financial system and enhance international cooperation on AML/CFT by increasing transparency and assisting countries in successfully taking action against the illicit use of their financial system. High-risk and N on cooperative J urisdictions. FATF attempts to identify those countries that are not complying with the FATF recommendations. On the basis of reviews by the International Co-operation Review Group (ICRG), jurisdictions may be publicly identified in one of the two FATF public documents that are issued three times a year: (1) FATF's Public Statement identifies jurisdictions that have strategic AML/CFT deficiencies and to which countermeasures apply and jurisdictions which have deficiencies but have not made progress in addressing the deficiencies or have not committed to an action plan to address the deficiencies; and (2) Improving Global AML/CFT Compliance: On-Going Process in which the FATF identifies those jurisdictions that have AFL/CFT deficiencies but have provided a high-level political commitment to address the deficiencies through a plan developed with the FATF. Financing of Proliferation. The FATF updated its standards to include measures on the implementation of targeted financial sanctions related to proliferation of weapons of mass destruction. Mutual Evaluations. The FATF conducts peer reviews of each member on an ongoing basis to assess levels of implementation of the FATF Recommendations, providing an in-depth description and analysis of each country's system for preventing criminal abuse of the financial system. Methods and Trends. FATF monitors and updates the constant evolution of the methods used to launder proceeds of criminal activities and finance illicit activities. Recently, FATF surveyed the vulnerability of Hawalas and other similar service providers to money laundering and terrorist financing as a result of their use of nonbank settlement methods. The FATF also surveyed the vulnerabilities and risks of the diamond trade to money laundering, including production, rough diamond sale, cutting and polishing, jewelry manufacturing, and jewelry retailers. Corruption. FATF focuses on the linkage between corruption and money laundering, both of which are generally committed to obtain or hide financial gain. When it was established in 1989, the FATF was charged with examining money laundering techniques and trends, reviewing the actions which had already been taken, and setting out the measures that still needed to be taken to combat money laundering. In 1990, the FATF issued a report containing a set of 40 recommendations, which provided a comprehensive plan of action to fight against money laundering. Following the terrorist attacks of September 11, 2001, the FATF redirected its efforts to focus on money laundering and terrorist financing. On October 31, 2001, the FATF issued a new set of guidelines and a set of eight special recommendations on terrorist financing. At that time, the FATF indicated that it had broadened its mission beyond money laundering to focus on combating terrorist financing and that it was encouraging all countries to abide by the new set of guidelines. A ninth special recommendation was added in 2005. In 2005, the United Nations Security Council adopted Resolution 1617 urging all U.N. Member States to implement the FATF 40 recommendations on money laundering and the nine special recommendations on terrorist financing. The FATF completed a review of its mandate and proposed changes that were adopted at the May 2004 ministerial meeting. In 2006, FATF adopted a new surveillance process, known as the International Cooperation Review Group, to identify, examine, and engage with vulnerable jurisdictions that are failing to implement effective AML-CFT systems. In addition, the FATF revised its mandate in 2008 to indicate that FATF "will intensify its surveillance of systemic criminal and terrorist financing risks to enhance its ability to identify, prioritize, and act on these threats." The FATF also expressed its support for the development of national threat assessments through best practice guidance and the establishment of stronger and more regular mechanisms for sharing information on risks and vulnerabilities. In addition, the FATF indicated its determination to remain at the center of international efforts to protect the integrity of the global financial system against new risks from criminals and terrorists. At the G-20 (Group of 20) Summit in Pittsburgh in 2009, the national leaders affirmed their commitment to deal with tax havens, money laundering, corruption, terrorist financing, and prudential standards. They called on the FATF to improve transparency and exchange of information so countries can fully enforce their laws. The G-20 members also called on the FATF to issue a public list of high-risk jurisdictions. In 2010, the FATF published guidelines for insurance companies and the cross-border transportation of cash and bearer bonds. The FATF also adopted a set of guidelines regarding tax amnesty laws and asset repatriation. In 2010, the FATF also published a report on the vulnerabilities of free trade zones for misuse in money laundering and terrorist financing. At the conclusion of the November 2010 G-20 Summit in Seoul, the members urged the FATF to "update and implement" the FATF standards calling for transparency of cross-border wire transfers, beneficial ownership, customer due diligence, and due diligence for "politically exposed persons." At the Cannes 2011 Summit, the G-20 leaders declared that "corruption is a major impediment to economic growth and development," and encouraged all jurisdictions to adhere to the international standards in the tax, prudential, and AML/CFT areas. The leaders also stated that, "We stand ready, if needed, to use our existing countermeasures to deal with jurisdictions which fail to meet these standards" (par. 36). The G-20 leaders also stated: We support the work of the Financial Action Task Force (FATF) to continue to identify and engage those jurisdictions with strategic Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) deficiencies and update and implement the FATF standards calling for transparency of cross-border wires, beneficial ownership, customer due diligence, and enhanced due diligence. At the November 4-5, 2012, meeting of G-20 finance ministers and central bank governors in Mexico City, the officials reaffirmed their support for FATF by concluding that "we remain committed and encourage the FATF to continue to pursue all its objectives and notably to continue to identify and monitor high-risk jurisdictions with strategic Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) deficiencies." In addition, the final communique from the July 2013 meeting of G-20 finance ministers and central bank governors in Moscow concluded: We reiterate our commitment to FATF's work in fighting money laundering and terrorism financing and its key contribution to tackling other crimes such as tax crimes, corruption, terrorism, and drug trafficking. In particular, we support the identification and monitoring of high risk jurisdictions with strategic AML/CFT deficiencies while recognizing the countries' positive progress in fulfilling the FATF's standards. We encourage all countries to tackle the risks raised by opacity of legal persons and legal arrangements.... Subsequent G-20 summits have issued similar statements of support for the FATF. At the G-20 summit in 2016 in Hangzhou, China, the leaders stated their continued support for the FATF and emphasized the importance of financial transparency to "protecting the integrity of the international financial system" and to preventing the misuse of the financial system for corruption, tax evasion, terrorist financing, and money laundering. To this end, the G-20 directed the FATF to develop additional proposals for the G-20 on ways to "improve the implementation of the international standards on transparency, including on the availability of beneficial ownership information of legal persons and legal arrangements, and its international exchange." On February 15, 2012, the FATF members adopted a revised and updated set of the FATF Forty Recommendations, which added the proliferation of financing of weapons of mass destruction to FATF's areas of surveillance. The new mandate is intended to (1) deepen global surveillance of evolving criminal and terrorist threats; (2) build a stronger, practical, and ongoing partnership with the private sector; and (3) support global efforts to raise standards, especially in low-capacity countries. In addition, the revised recommendations address new and emerging threats, while clarifying and strengthening many of the existing obligations. The new standards strengthen the requirements for higher-risk situations and allow countries to take a more focused approach to areas where high risks remain or where implementation could be enhanced.