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Pakistan retained on ‘grey list’ of FATF
Why is it in news?
- Pakistan has been retained on the ‘grey list’ of the Financial Action Task Force (FATF) for another four months, with a stern warning from the global watchdog that met in Paris (February 19-21) to complete the 27-point action plan it has been given by June 2020 or face being put on the ‘black list’.
More in news
- Statement from FATF: All deadlines in the action plan have expired. While noting recent and notable improvements, the FATF again expresses concern, given Pakistan’s failure to complete its action plan in line with the agreed timelines and in light of the terror financing risks emanating from the jurisdiction.
- September 2019 deadline: Pakistan was given a September, 2019 deadline to complete the tasks that included shutting down all access to funding of United Nations Security Council-designated terrorist groups, including the Taliban, al-Qaeda, the Lashkar-e-Taiba and the Jaish-e-Mohammed.
- More about FATF
(1) The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.
(2) Objective of FATF: To 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.
(4) The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
(5) The FATF's decision making body, the FATF Plenary, meets three times per year.
Sources
The Hindu, FATF website