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Pakistan retained on ‘grey list’ and Iran in ‘black list’ of FATF

  • IASbaba
  • February 22, 2020
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Pakistan retained on ‘grey list’ and Iran in ‘black list’ of FATF

Part of: GS Prelims –Polity and GS-II- International organization

In news:

  • 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
Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 22nd February 2020

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 22nd February 2020

Source: The Hindu

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.

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