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.
