Why is it in news?
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India questioned Pakistan’s commitment to fighting terrorism following reports that Jamaat-ud Dawa and its associate group Falah-I-Insaniyat Foundation are no longer on the list of banned organisations.
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Pakistani position of not extending the Presidential ordinance is a complete turnaround from its submission to the international Financial Action Task Force (FATF) that put it on a “greylist” earlier this year.
FATF
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It is an inter”governmental policy making body
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It aims to establish international standards for combating money laundering and terrorist financing.
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It was established in 1989 during the G7 Summit in Paris (France) to combat the growing problem of money laundering.
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It comprises over 39 countries.
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India is a member.
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FATF Secretariat is housed at the headquarters of the OECD in Paris.
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Initially it was only dealing with developing policies to combat money laundering. But in 2001 its purpose was expanded to act against terrorism financing.
Objectives:
- Set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
- Functions:
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Set international standards to combat money laundering and terrorist financing.
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Assess and monitor compliance with the FATF standards.
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Conduct studies of money laundering and terrorist financing methods, trends and techniques.
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Respond to new and emerging threats, such as proliferation financing (used for promoting proliferation of chemical, biological and nuclear weapons)
Source
The Hindu