Terror Watchdog FATF Blacklisting Pakistan

Terror Watchdog FATF Blacklisting Pakistan

Pakistan is likely to be added in the Dark Grey list. International terror financing watchdog FATF is

about to take some strong action against Pakistan. Officials attending the ongoing plenary of the Financial Action Task Force (FATF) here said as per indications, Pakistan will be isolated by all members for not doing enough. Pakistan is on the verge of strong action by FATF, given its inadequate performance, whereby it managed to pass in only six of 27 items, an official privy to the development said.

FATF was established in July 1989 by a Group of Seven (G-7) countries in a Summit held in Paris. FATF was established to monitor and develop measures to combat money laundering. In October 2001, FATF took the responsibility of monitoring terror funding and human trafficking.

Terror Watchdog FATF Blacklisting Pakistan
Terror Watchdog FATF Blacklisting Pakistan

Functions of FATF:

  • The FATF is an independent inter-governmental body that develops and promotes policies In order to protect global financial system from terrorist and anti social elements.
  • FATF has also started dealing with the virtual currency.
  • It is an international policy-making body. It does not have any role in law enforcement matters, investigations or prosecution.

Meaning of Dark Grey list:

According to FATF, between Grey and Black lists there is one essential list named as Dark Grey list. ‘Dark Grey’ means issuance of a strong warning, so that the country concerned gets one last chance to improve. Countries which are not safe are supposed to be added in the Black list. Countries which are known for terror funding and money laundering are included in this list. Dark Grey is a last warning to the concerned country before adding it to Black list. If the country is unable to improve terror funding and money laundering, it is shifted to black list.

Problems that country faces after putting in the Dark Grey List:

  • Economic sanctions from international institutions (IMF, World Bank, ADB etc.) and countries.
  • Problem in getting loans from international institutions (IMF, World Bank, ADB etc.) and countries.
  • Reduction in its international trade.
  • International boycott.

 

Terror Watchdog FATF Blacklisting Pakistan
Terror Watchdog FATF Blacklisting Pakistan

For the first time Pakistan was included in the grey list in 2012 and
remained in it till 2015.

On 29th June, 2018 FATF Grey listed Pakistan for the second time. The process began in February 2018 when FATF approved the nomination of Pakistan for monitoring under its International Cooperation Review Group (ICRG) commonly known as ‘grey list’.

Countries like USA, UK and India asking that Pakistan should be added in the Black list of FATF but China and Turkey are against this.

On one side, Pakistan is facing this humiliation to come in Grey List and on other side, their country is welcoming Royal blood by saying Pakistan as Land of Peace. Strange!!

 

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