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

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.