International terror financing watchdog, the Financial Action Task Force (FATF) has decided to keep Pakistan on its grey list.This was decided at its week-long plenary meeting in Paris.It means downgrading of the country by institutions like IMF, World Bank,ADB,EU and also reduction in risk rating by Moody’s, Fitch and S&P.
FATF has said that Pakistan has until October this year to either comply with the demands made by FATF members or it could be blacklisted.The blacklisting will prevent institutions like IMF from financially supporting Pakistan, which is anticipating a financial crisis.
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” which 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.
The objectives of the FATF are to (a) set standards and promote effective implementation of legal, regulatory and operational measures (b) for combating money laundering (c)terrorist financing and (d) other related threats to the integrity of the international financial system