Pakistan Removed from FATF Grey List

Pakistan Removed from FATF Grey List
Source: Indian Express
GS II: International Relation; GS III: National Security and Challenges

What is discussed under Pakistan Removed from FATF Grey List?

Pakistan has been taken from the Financial Action Task Force’s (FATF) Grey List.

The international group called the Financial Action Task Force (FATF) develops and advocates for laws and guidelines to combat financial crime.
The task force was established in 1989.
It continues to operate out of Paris under the name Groupe d’action Financière.
Almost all industrialised nations support the FATF or are members of it.

Objectives

Money laundering, terrorist funding, and other risks to the international financial system are the focus of recommendations made by the FATF.
Image by OpenClipart-Vectors from Pixabay
In 2001, a list of recommendations for preventing the funding of terrorism was included.
In the most recent revision, which was released in 2012, the suggestions were broadened to include financing the spread of Weapons systems as a new concern.
In order to make transparency and corruption more evident, recommendations were also made.

Members

The Financial Action Task Force had 39 members as of 2021, including the World Bank and the United Nations.
A nation must meet certain criteria before it can join, including:
- Being a member of other significant international organisations, having a large population, a high GDP, an established banking and insurance industry, etc.
Many multinational organisations take part in the FATF as observers and each is involved in anti-money laundering efforts in some way.
- The International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), Interpol, and the World Bank are some of these organisations.

Two lists under FATF

Grey List: The countries on the grey list actively collaborate with the organisation to guarantee that they prevent money laundering and fix the other issues in their regimes, making them the ones that need increased monitoring.
Black List: This is a list of countries that the FATF considers to be uncooperative in the fight against money laundering and terrorism funding.

Pakistan was included in the FATF’s “grey list” in 2018, which required more monitoring of the country.
Pakistani newspaper Dawn claims that the nation was added to the list as a result of structural inadequacies in what FATF refers to as AML/CFT (anti-money laundering and combating the financing of terrorism).
With the exception of 2018, Pakistan was included on the grey list from 2012 to 2015.

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