Financial Action Task Force and Question of Legitimacy: A Constitutionalism-based Analysis

Abstract

This article will analytically evaluate legal status of Financial Action Task Force (FATF), designated to set international financial standards and works as watchdog on threats of Money laundering (AML), Terrorist financing (TF) and Proliferation financing (PF). Its recommendations have universal pertinence to safeguard the global financial systems; the article finds that recommendations patronized by FATF are adherent to the United Nations conventions, international instruments thus integral to Global Administrative Law (GAL). Though, its institutional legitimacy is frequently objected by the non-member states, siding with global constitutionalism or the national sovereignty, but whether the framework truly suffers from the legal deficit, sufficient to discredit its mandate or not? However, the article at minimum settles there lies legitimacy behind FATF‟s recommendation. Nonetheless, it is necessary to have in place a mechanism sequel to the global constitutionalism to thwart concerns of authoritarianism and undemocratic run to constitutionalize FATF.