FATF stands for Financial Action Task Force. It is an international organization founded by the G7 in 1989 aiming to combat money laundering and terrorist financing. The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action. The FAFT regularly publishes articles and handbooks about money laundering, fraud and terrorism financing with recommendations on how to detect and combat such activities.
One of the most important outcomes of the FAFT is its grey and black list of countries with strategic deficiencies to counter money laundering, terrorist financing, and financing of proliferation. Countries on the grey list are cooperating on improving the deficiencies while countries on the black list do not cooperate with FATF.
It is highly recommended not to allow any transactions with black-listed countries and to invoke EDD for any transactions/clients with nexus to the grey-listed countries.
Outside the AML scope, FATF also offers publications related to corruption, asset recovery, digitalization, virtual assets and environmental crime.
Source: https://www.fatf-gafi.org/
https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html