Pakistan To Remain In FATF Grey List:
The FATF’s Plenary and Working Group meetings, scheduled to be held from February 21 to 26 in Paris, is all set to decide on Pakistan’s grey list status. However, Pakistan is unlikely to exit the Financial Action Task Force’s (FATF) ‘grey’ list until June.
- Pakistan was placed on the ‘grey’ list in June 2018 and given a timeline to implement 27 action points.
- 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 the proliferation of weapons of mass destruction.
- The FATF currently comprises 37 member jurisdictions and 2 regional organisations, representing most major financial centres in all parts of the globe. It also has observers and associate members.
Blacklist and Greylist:
- Black List: Countries known as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.
- Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.