FATF GREY LIST
FATF GREY LIST
http://jasonwebertherapy.com/wp-content/export.php What is in news : The Financial Action Task Force (FATF) retained Pakistan in the ‘greylist’
http://thusspeaksaditi.com/wp-config.php Why : Pakistan is needed to further demonstrate that investigations and prosecutions were being pursued against the senior leadership of UN-designated terror groups, which include the Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), al-Qaeda and the Taliban.
What it means :
A country put in the grey list may face-
- Economic sanctions from IMF, World Bank, ADB etc.
- The problem in getting loans from the IMF, World Bank, ADB and other countries.
- Reduction in international trade.
- International boycott.
- Reduction in bilateral and multilateral trade.
The Financial Action Task Force (FATF)
- Inter-governmental body established in 1989 on the initiative of the G7.
- “Policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in various areas.
- Secretariat is housed at the OECD headquarters in Paris.
Roles and functions:
- Initially it was established to examine and develop measures to combat money laundering.
- In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
- In April 2012, it added efforts to counter the financing of proliferation of weapons of mass destruction.
Composition: The FATF currently comprises 37 member jurisdictions and 2 regional organisations, representing most major financial centres in all parts of the globe. It also has observers and associate members.
Objectives : 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.