Q. With reference to FATF Grey list, consider the following statements;
1.These are countries that have, in the assessment of the FATF, failed to prevent international money laundering and terrorist financing.
2.At present, Pakistan has been remained in the FATF grey list for the fifth consecutive year.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] .Neither 1 nor 2

Answer: A
Notes:

Statement 1 is correct: FATF maintains a “grey list” of countries that it watches closely. In essence, these are countries that have, in the assessment of the FATF, failed to prevent international money laundering and terrorist financing, and are, therefore, on a global watchlist for bad behaviour.

Statement 2 is incorrect: Recently, Pakistan has been taken off the ‘grey list’ of the Financial Action Task Force (FATF) after four years.

Countries on the list are The Philippines, Syria, Yemen, the United Arab Emirates, Uganda, Morocco, Jamaica, Cambodia, Burkina Faso, and South Sudan, and the tax havens of Barbados, Cayman Islands, and Panama.

Source: Pakistan is out of FATF ‘grey list’ on terror funding