Why in News? 

The Financial Action Task Force (FATF) has, for the first time, included a section on state-sponsored terrorism in its July 2025 report, reinforcing India’s stance against Pakistan’s role in terror financing. 

About FATF (Financial Action Task Force) 

• FATF is an intergovernmental body that sets global standards to prevent money laundering and terrorist financing. 
• It was established in 1989 at the G7 Summit in Paris. 
• In 2001, its mandate was expanded to include counter-terrorism financing. 
• Headquarters: Paris, France. 

Objectives of FATF 

• To set and promote international standards to combat money laundering and terror financing. 
• To ensure countries take effective action against financial crimes. 

Membership 

• 39 members including India, USA, UK, France, China, and the EU. 
• Over 180 countries are connected via FATF-style regional bodies (FSRBs). 
• India became a member in 2010 and also belongs to, 
  • Asia Pacific Group (APG) 
  • Eurasian Group (EAG)