Published on: March 7, 2022
FATF GREY LIST
Financial Action Task Force (FATF) has included United Arab Emirates (UAE) in its grey list.
- Lack of adequate financial intelligence capabilities to check illicit flows of money.
- Inability to proactively identify and report suspicious financial transactions.
- Inadequate investigation & prosecution of terror financing and money laundering cases.
- Inability to manage risks and vulnerabilities in industries like jewelry, real estate, etc.
FINANCIAL ACTION TASK FORCE
- Inter-governmental body
- Established in 1989 during the G7 Summit in Paris
- 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.
- Secretariat – Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.
- Member Countries: As of 2019, it consists of thirty-seven member jurisdictions. India is one of the members.
- 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.
- The FATF Plenary is the decision making body of the FATF. It meets three times per year.