The group has established four committees to assess whether financial centres around the world meet newly published criteria for judging rules and practices that impede the prevention of money laundering.
FATF said that if territories and countries were found not to be co-operating in the fight against terrorism, efforts would initially be made to persuade them to amend their laws and practices.
Pressure could also be exerted through other forums such as the Group of Seven leading industrial nations, the OECD, the Basle Committee, the World Bank and the International Monetary Fund.
If offenders still fail to mend their ways, financial institutions in other countries could be instructed to monitor transactions and report suspicious dealings to supervisors, auditors and law enforcement authorities.
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit
In our latest managing partner Q&A looking towards 2017, CVR Global's Richard Toone talks about recruitment, and the potential threat of competition from the legal sector, as key issues for the firm in the coming year
Deloitte to avoid tendering for government contracts over the next six months, to appease Theresa May following consultant's report that painted a less-than-flattering picture of Brexit plans
In our first Q&A looking towards 2017, Menzies senior partner Julie Adams flags up increasing digitisation, aligned with more hands-on consultative services, as the key mix for her practice