FATF Decided To Keep Pakistan In Grey List


Financial Action Task Force
Financial Action Task Force
FATF Decided To Keep Pakistan in Grey List - International terror financing watchdog, the Financial Action Task Force (FATF) has decided to keep Pakistan on its grey list. India had made a strong push to ensure that Islamabad is not taken off the list, in the aftermath of Pulwama terror attack. Paris-based FATF said, Pakistan has made only limited progress in curbing money laundering and terrorism financing. 
Pakistan was included in the grey list for the first time in 2012 and remained in it till 2015. On 29 June, 2018 FATF Grey listed Pakistan for the second time.

What is FATF

Headquarters: Paris, France
President: Marshall Billingslea
Membership: 38
FATF Secretariat is housed at the OECD headquarters in Paris.
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989. 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.
FATF has 2 types of lists one is Black list and other is Grey list.
Black List: Only those countries are included in this list that FATF considers as unco-operative tax havens. These countries are known as Non-Cooperative Countries or Territories (NCCTs). In other words; countries which are not supporting terror funding and money laundering activities are listed in the Black list.
Grey List: Those countries which are considered as the safe heaven for supporting terror funding and money laundering; included in this list. Now Grey list is a warning given to the country that it might come in Black list (Just like a yellow card in a football match).
When a country comes in the Grey list, it faces many problems like - Economic sanctions, Problem in getting loans from international institutions. Overall Reduction in its international trade, International boycott.