Published on: June 25, 2021
FATF GREY LIST
What is in news : Pakistan was retained on the greylist, or the list of countries under “increased monitoring”, by the Financial Action Task Force (FATF)
Financial Action Task Force
- The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 during the G7 Summit in Paris.
- The objectives of the FATF are 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.
- Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.
- Member Countries: it consists of thirty-seven member jurisdictions.
- India is one of the members.
- The FATF Plenary is the decision making body of the FATF. It meets three times per year.
FATF has two lists:
- Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.
- Black List: Countries known as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.
Status of Pakistan:
- Pakistan, which continues to remain on the “grey list” of FATF, had earlier been given the deadline till the June 2020 to ensure compliance with the 27-point action plan against terror funding networks and money laundering syndicates, or face “black listing”.
- However, owing to the Covid-19 pandemic, the deadline has been shifted to October 2020.
India and FATF:
- Ahead of the crucial meet on 24th June, India plans to share more evidence with the key FATF members on the narco-terror cases linked to Pakistan-based syndicates, through which funds are allegedly being supplied to the terrorists operating in Jammu and Kashmir.
- The Enforcement Directorate and the National Investigation Agency have been probing several such cases.