Ground Report | New Delhi: Pakistan continues on grey list; The Financial Action Task Force (FATF) in a three-day meeting in Paris has decided to keep Pakistan on the grey list and also to include Turkey, Jordan, and Mali in the grey list.
Pakistan continues on grey list
The meeting in Paris lasted from October 19 to October 21 and a briefing was given on the decisions to be made at the meeting on Thursday. “Pakistan will remain on the Increased Monitoring List (grey List) but Pakistan has implemented 30 out of 34 points extensively,” FATF chief Marcus Palia told a news briefing.
According to the FATF report, since June 2021, Pakistan has taken immediate steps to regulate anti-money laundering / CFT regulations, including legal amendments, to expand the framework for global cooperation.
The report calls on Pakistan to take further steps, including providing evidence that Pakistan seeks to extend the impact of these sanctions beyond its borders and to do so has been placed on UN lists. The names of more people will have to be added.
In addition, Pakistan will have to demonstrate an increase in money laundering investigations and cases and take legal action against those involved in its risk profile. Pakistan, along with its foreign counterparts, will have to find such individuals, freeze and seize their assets.
According to Turkish news agency Anadolu, Turkey’s Revenue Ministry has said that its inclusion in the FATF list is a completely unfair decision. The Revenue Ministry has said that despite all the cooperation, it has been included in the grey list. Turkey has been a member of the FATF since 1991.
The FATF has denied the allegation that Pakistan is not being removed from the grey list under pressure from India. FATF chief Marcus Pleier said in a press conference, “Pakistan should act with the investigation against banned terrorists and terrorist groups. Under the Action Plan 2019, Pakistan should crackdown on terrorists. Pakistan has completed 30 action points out of 34.
What is FATF?
The FATF is an international organization established in 1989 at the initiative of the G7 countries. The organization is headquartered in Paris, the capital of France, which formulates policies to combat money laundering happening around the world.
In 2001, it also included the financing of terrorism in its policies. The organization formulates policies to keep the international financial system correct and works towards its implementation. It has a total of 38 member countries, including India, America, Russia, Britain, China.
Since June 2018, Pakistan has been on the radar of money laundering watchdogs around the world. Pakistan came under attack from these institutions after it was put on the ‘grey list’ for funding terrorists and the threat of money laundering.
What is a grey list and a blacklist?
The FATF generally oversees and enforces anti-money laundering and terrorist financing laws. Countries that have problems with their laws and enforcement are identified.
Although the FATF itself does not impose sanctions on any country, FATF member states can also impose economic sanctions on violating countries. Lists used to monitor FATF countries are called grey lists and blacklists.
The blacklist includes high-risk countries that have loopholes in anti-money laundering and terrorist financing laws and regulations. With regard to these countries, there is a strong possibility that FATF member countries may also impose sanctions on them.