Financial Action Task Force (FATF) decides to keep Pakistan on its grey list

  • IASbaba
  • October 26, 2020
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Financial Action Task Force (FATF) decides to keep Pakistan on its grey list

Part of: GS Prelims and GS-II – International Relations 

In news

  • The Financial Action Task Force (FATF) decided to keep Pakistan on its “grey list”. 
  • According to FATF, Pakistan has failed to act on six key mandates. 
  • It urged Pakistan to complete an internationally agreed action plan by February 2021.

Important value additions 

Financial Action Task Force (FATF)

  • The FATF is a global watchdog. 
  • It was founded to tackle money laundering initially but its role became prominent after the 9/11 terror attacks.
  • It expanded its operations and included terror financing under its purview after 9/11.
  • Its membership includes 39 jurisdictions.
  • It maintains two lists – a blacklist and a grey list. 
  • Countries on its blacklist are those that FATF deems non-cooperative in the global effort to curb money laundering and terror-financing.
  • The grey list is officially referred to as ‘Jurisdictions under Increased Monitoring.’
  • It constitutes those nations that present significant risks of money laundering and terror-financing but which have committed to working closely with the FATF in the development and implementation of action plans that address their deficiencies.
  • If the country is not actively tackling money laundering or terror funding, it is then blacklisted. 
  • So far, only two countries have been blacklisted – Iran and North Korea.

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