15-03-2021 | 15:48 PM
Pakistan to remain in FATF grey list till June
Context
On February 25, the Global anti-terrorism watchdog Financial Action Task Force (FATF) decided to retain Pakistan on the “Grey list” till the next review of its performance during the June 2021 plenary session.
Key Highlights
The decision of retaining Pakistan on the “Grey list by the FATF was taken in the light of country’s failure to fully comply with the 27-point action plan of to combat the terrorism. This decision was taken following a virtual plenary session that was over three days.
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.
Countries placed on the ‘grey’ list face problems in getting loans from IMF, World Bank, ADB and other countries, Reduction in international trade and International boycott.
The FATF has decided to keep Pakistan into the grey list and will remain under increased monitoring because serious deficiencies were observed with respect to the terror financing.
Though, Pakistan has taken several steps but it needs to act upon three important points out of 27 action points.
FATF stated that, Pakistan needs to work on implementing following three remaining items out of 27 items:
Pakistan needs to demonstrate the Terror funding investigations and prosecutions targeting the persons & entities acting on behalf of the designated persons or entities.
Pakistan needs to demonstrate that Terror funding prosecutions result in Proportionate, effective and dissuasive sanctions.
Pakistan needs to demonstrate the effective implementation of targeted financial sanctions against all the UN security council resolution 1267 and 1373 designated terrorists.
About FATF
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 on the initiative of the G7.
FATF is a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in various areas.
The FATF Secretariat is housed at the OECD headquarters in Paris.
