What is one of the principal goals of the FATF?

Study for the BAFT Certificate in Principles of Payments Test. Utilize flashcards and multiple-choice questions, with hints and explanations for each query. Prepare thoroughly for your exam!

The principal goal of the FATF (Financial Action Task Force) is to combat the financing of terrorism and money laundering. This international organization sets standards and promotes measures to combat these threats to the integrity of the global financial system. Established in 1989, the FATF focuses on developing policies that enhance the ability of governments and financial institutions to detect and prevent illicit financial activities.

By addressing threats like money laundering and terrorism financing, the FATF helps nations strengthen their regulatory frameworks, implement effective law enforcement measures, and foster cooperation among countries. This not only protects the financial system from abuse but also enhances global security by addressing the funding sources of criminal and terrorist organizations.

The other options reflect different aspects of financial services and regulations but do not encapsulate the primary mission and focus of the FATF, which is explicitly concerned with preventing financial crimes and improving the overall integrity of the financial system.

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