FATF Blacklisting – Recent Development

FATF blacklisting:

Pakistan might be pushed into the Financial Action Task Force’s (FATF) ‘blacklist’ next month as it continues to finance and tolerate terrorist organizations.

  • According to a report, terrorist organisations, such as Jamaar-ud-Dawa (JuD) and Jaish-e-Muhammed (JeM), continue to operate with impunity in Pakistan.

FATF Blacklist:

  • It is a list of countries that the intra-governmental organisation considers non-cooperative in the global effort to combat money laundering and the financing of terrorism.
  • In October, the FATF decided that Pakistan will continue to be on its greylist and asked it to continue to work on implementing an action plan to address its strategic deficiencies.
  • Pakistan is on the FATF’s grey list since June 2018 and the government was given a final warning in February 2020 to complete the 27 action points by June in the same year.
  • The FATF extended the June deadline to September due to the spread of coronavirus that disrupted the FATF plenary meetings.

About FATF:

  • The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 on the initiative of the G7.
  • It is a “policy-making body” that works to generate the necessary political will to bring about national legislative and regulatory reforms in various areas.
  • The FATF Secretariat is housed at the OECD headquarters in Paris.

Roles and functions:

    • Initially, it was established to examine and develop measures to combat money laundering.
    • In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
    • In April 2012, it added efforts to counter the financing of proliferation of weapons of mass destruction.

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