FATF
- October 14, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
Subject: International Organisation
Context: Pakistan likely to remain on FATF grey list.
Concept:
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.
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.
- The FATF Plenary is the decision making body of the FATF. It meets three times per year.
Status of Pakistan:
- Pakistan, which continues to remain on the “grey list” of FATF, had been given the deadline till the October 2020 to ensure compliance with the 27-point action plan against terror funding networks and money laundering syndicates, or face black listing.
Additional Information:
Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG)
- It is a regional body comprising nine countries: India, Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Belarus.
- It is an associate member of the FATF.