
Terror-funding: FATF retains Pakistan on grey list
Why in news?
- The terror financing watchdog FATF discussed Pakistan's actions for countering terror financing and anti-money laundering at the International Co-operation Review Group (ICRG) plenary in Paris that concluded on Friday.
More in news
- Retained on Grey List with a stern warning: The Financial Action Task Force (FATF) retained Pakistan on the “grey list” and gave a stern warning that it will be blacklisted if it does not fulfil the global standards criteria on combating terrorist financing by February 2020.
- Monitored Since 2018 without much Progress : Pakistan has been under the enhanced monitoring process since June 2018 but has not made sufficient progress, said FATF president Xiangmin Liu.
- Progress under new Govt. :“Despite the high-level commitment to fix these weaknesses, Pakistan has not made enough progress but has made tangible progress under this new government, which FATF welcomes,” the FATF president said.
- Constraints under FATF 'Grey List':
(1) Difficult to get financial aid from the IMF, the World Bank, Asian Development Bank and the European Union.
- Other details:
(1) French diplomatic sources say they had originally sought positions from the 39-member grouping on "black listing" Pakistan as its deadline to fulfill the action plan had expired, but had not received a consensus in the matter.
(2) China, Turkey and Malaysia have also opposed downgrading in the past, which was sufficient to veto such a move.
(3) Pakistan addressed 5 out of 27 tasks given to it, FATF noted.
Sources
The Hindu