PAKISTAN IN FATFs GREY LIST

Context :

Pakistan has been included in the grey list of the Financial Action Task Force (FATF).

What is FATF?

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by G7 countries in Paris.
The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
The FATF's decision-making body, the FATF Plenary, meets three times per year.

FATF Headquarters:

Paris, Frace

Objectives :

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.

Functions :

1. . The FATF is an independent inter-governmental body that develops and promotes policies to protect the global financial system so that it could bot be used by the terrorists and other anti-social elements.
2. FATF has started dealing with the Virtual currency.

Types of Lists :

1. Black list
2. Grey List

1. Black list :

Only those countries are included in this list that FATF considers as non-coperative tax havens for terror funding. These countries are known as Non-Cooperative Countries or Territories (NCCTs). In other words; countries which are supporting terror funding and money laundering activities are placed in the Black list.

2. Grey list :

# Those countries which are not considered as the safe heaven for supporting terror funding and money laundering; included in this list.

# The inclusion in this list is not as severe as black listed.

# Now Grey list is a warning given to the country that it might come in the Black list. If a country is unable to curb mushrooming of terror funding and money laundering; it is shifted from grey list to black list by the FATF.

# The countries on Grey List are Monitored by the International Cooperation Review Group (ICRG)

Impacts of Grey List :

1. Economic sanctions from international institutions (IMF, World Bank, ADB etc.) and countries

2. Problem in getting loans from international institutions (IMF, World Bank, ADB etc.) and countries

3. Overall Reduction in its international trade

4. International boycott

Source: THE HINDU

Join Our Telegram

HOW INSECTS, PESTS WIPE OF AJANTA CAVE PAINTING ?

GUPTA DYNASTY EMPEROR SKANDAGUPTA

Oceanic Anoxic Event 1a and MASS EXTINCTION

25 Dec, 24
SHARE

Oceanic Anoxic Event 1a from the Paris Basin (Environment) Paper-3 PMP OAE 1a refers to a period during the Cretaceous Period (145 million years ago and ended 66 million years ago) when Earth's oceans became depleted of oxygen, causing a significant disruption in marine life. Cause: The event is believed to have been

Viksit Panchayat Karmayogi (Good governance)

26 Dec, 24
SHARE

Viksit Panchayat Karmayogi (Good governance) Governance GS PAPER-2 PMP Dr. Jitendra Singh launched the ‘Viksit Panchayat Karmayogi’ initiative on Good Governance Day, celebrated to mark the 100th birth anniversary of former Prime Minister Atal Bihari Vajpayee. The initiative, which is part of the broader ‘Prashasan Gaon

Major programmes to control Air Pollution

23 Dec, 24
SHARE

Major programmes to control Air Pollution National Clean Air Programme? It was launched by the Ministry of Environment, Forests and Climate Change (MoEFCC) in January 2019. It is the first-ever effort in the country to frame a national framework for air quality management with a time-bound reduction target. The

Air pollution and Air quality Measures in India

21 Dec, 24
SHARE

Air pollution and Air quality Measures in India (Environment) GS Paper-3 P-M-P Air pollution may be defined as the presence of any solid, liquid or gaseous substance including noise and radioactive radiation in the atmosphere in such concentration that may be directly and/or indirectly injurious to humans or other l

Geopolitical Significance of Ports

20 Dec, 24
SHARE

Geopolitical Significance of Ports (IR) Act as geopolitical assets: Ports enhance the projection of strategic reach, which helps strengthen the country’s control over important sea and energy supply routes. E.g. Indian Navy’s staging base at Agalega Islands will enable marine patrols