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PAKISTAN RETAINED IN FATF’S GREY LIST

Why in news?

Pakistan has been retained on the “grey list” of the Financial Action Task Force (FATF) for another four months, with a stern warning from the global watchdog that met in Paris (February 19-21) to complete the 27-point action plan it has been given by June 2020 or face being put on the “black list”

What did the FATF tell?

According to the FATF summary report released on Friday evening, Pakistan needs to continue to work on eight specific areas, including demonstrating it is “identifying and investigating” all terror financing activity in the country, freezing the funds of all designated terrorists and that its prosecutions result in “effective, proportionate and dissuasive sanctions” against all terror entities in Pakistan

What is FATF?

  • Financial Action Task Force on Money Laundering
  • Is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering
  • In 2001 its mandate expanded to include terrorism financing.
  • It monitors progress in implementing the FATF Recommendations through “peer reviews” (“mutual evaluations”) of member countries
  • The FATF Secretariat is housed at the OECD headquarters in Paris.
  • The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
  • The FATF is, therefore, a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas
No reprieve 
Pakistan has been retained on the 'grey list' of the Financial 
Action Task Force (FATE) for four more months 
• Pakistan was given 
a September 2019 
deadline to shut 
down access to 
funding of UN Secu- 
r it-y Coulcil-desig- 
nated groups 
and prosecute 
their leadership 
• In November 
2019, after 
Pakistan was 
judged to 
have complied 
with only four 
points, 
the FATF 
the 
deadline to February 
• Püistan is among 
12 countries on the 
•grey list' or 'other 
monitored 
jurisdictions' that are 
being for 
actions to Stop terror 
financing and money 
laundering 
• A 'black list' refers 
to countries for 
whom there has been 
a •call to action" or 
stf1Ct banking and 
international finance 
sanctions
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