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.
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel