Financial Action Task Force Decides To Remove Pakistan From 'Grey List'
In June 2022, the Financial Action Task Force (FATF) has given a big relief to Pakistan in a three-day convention in Berlin, Germany. It has decided to remove Pakistan from the 'Grey List'.
The FATF may make an official announcement during the session in October 2022. According to FATF, Pakistan has fulfilled the conditions, although it has also talked about onsite visit in its decision. Onsite visit means FATF is satisfied with Pakistan's work.
Pakistan has been on the FATF gray list continuously since June 2018.
▪️Financial Action Task Force (FATF)
It is an intergovernmental body that was established in 1989 during the G7 summit in Paris. In October 2001 after the 9/11 attack, the FATF expanded its mandate to include efforts to combat terrorist financing.
In April 2012, it added the efforts to combat the financing of the proliferation of weapons of mass destruction. The FATF has developed the FATF Recommendations or Standards, which ensure a coordinated global response to combating organized crime, corruption and terrorism.
The FATF currently consists of 37 member jurisdictions and two regional organizations (the European Commission and the Gulf Cooperation Council), representing the most prominent financial centers in all parts of the world. India is a member of FATF since 2010.
Its secretariat is located at the Organization for Economic Co- operation and Development (OECD) headquarters in Paris.
▪️ Now 22 countries will be in the gray list
As of March 2022, a total of 23 countries were in the gray list. It includes Pakistan as well as Syria, Turkey, Myanmar, Philippines, South Sudan, Uganda and Yemen, but now the name of Pakistan will be removed from this list.
▪️ FATF Lists
1. Gray List
Countries that are considered safe havens to support terror funding and money laundering have been put on the FATF gray list. The
inclusion in this list serves as a warning to the country concerned that it may be included in the black list.
2. Black List
Countries identified as non- cooperating countries or regions are included in the blacklist. These countries support terrorist funding and money laundering activities. The FATF regularly revises this list to include or remove countries.
Iran and the Democratic People's Republic of Korea (DPRK) are currently on the High Risk Jurisdiction or Black List.