UPSC Articles
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.
