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What is the News?
The Financial Action Task Force (FATF) has decided to keep Pakistan in its “grey list”.
Background:
- The FATF had issued the 27-point action plan after placing Pakistan on the ‘Grey List’ in 2018.The action plan pertains to stop money laundering and terror financing.
What is the status of the 27-point action plan?
- Pakistan has completed around 26 of the 27 items given to it in the 2018 action plan to combat terror-financing.
- However, Pakistan couldn’t exit the grey list due to one remaining item. It has failed to demonstrate that terror-financing investigations and prosecutions target senior leaders and commanders of UN designated terrorist groups.
About Financial Action Task Force (FATF):
- The FATF is an inter-governmental body established in 1989 during the G7 Summit in Paris.
- Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.
- Members: There are currently 39 members of the FATF; 37 jurisdictions and 2 regional organisations (the Gulf Cooperation Council and the European Commission).
Listing by FATF:
- Grey List: Countries that are considered a safe haven for supporting terror funding and money laundering are put in the grey list.
- This inclusion serves as a warning to the country that it may enter the blacklist.
- The greylisting carries no legal sanctions. But it attracts economic sanctions and restricts a country’s access to international loans
- Black List: Countries known as Non-Cooperative are put in the blacklist. These countries support terror funding and money laundering activities.
