FATF grey list

Subject: IR

Context:

Pakistan is again looking to China, Malaysia and Turkey to help it get off lightly for failing to fully implement an action plan to tackle terror funding when the Financial Action Task Force (FATF) assesses its case in October

Concept:

• The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog.
• The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
• 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.
• The FATF currently comprises 37 member jurisdictions and 2 regional organization namely GCC and EC
• Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. This list is often externally referred to as the ‘grey list’.