Pakistan retained on ‘grey list’ and Iran in ‘black list’ of FATF
Part of: GS Prelims –Polity and GS-II- International organization
- Pakistan has been retained on the ‘grey list’ of the Financial Action Task Force (FATF)
- To complete the 27-point action plan it has been given by June 2020 or face being put on the ‘black list’
- FATF placed Iran on its blacklist after it failed to comply with international anti-terrorism financing norms, a move that will deepen the country’s isolation from financial markets.
FATF summary report states that Pakistan must work on eight specific areas:
- Identifying and investigating ”terror-financing activities
- Freezing the funds of all designated terrorists
- “effective, proportionate and dissuasive sanctions” against all terror entities
From Prelims Point of View:
Financial Action Task Force (FATF)
- Inter-governmental body
- Established in 1989 during the G7 Summit
- Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.
- Works to set standards and promote effective implementation of legal, regulatory and operational measures
- Combats money laundering, terrorist financing ,related threats to the integrity of the international financial system.
Grey list : A country is put on the grey list when it fails to curb terrorism financing and money laundering
Blacklist : Putting a country on the blacklist means shutting all doors to international finance for that country.