International FATF: Pakistan to continue being Grey Listed

25 Feb 2019

International FATF: Pakistan to continue being Grey Listed

Condemning the Pulwama attack, the Financial Action Task Force (FATF) decided to continue grey listing of Pakistan for its failure to stop funding of terror groups. But it did not accept the Indian demand to move Pakistan to the black list.

Terrorist group, Jaish-e-Mohammed (JeM), is believed to be operating with the support of Pakistan.

OECD (The Organisation for Economic Co-operation and Development) is an intergovernmental economic organisation with 36 member countries and 2 regional organisations (EU and GCC), founded in 1961 to stimulate economic progress and world trade.
 	Later, Financial Action Task Force, an Intergovernmental body was established in 1989 to specifically promote policy for combating money laundering and terrorist financing in the member countries.

FATF has fixed standards to monitor the member countries law and order on money laundering and terrorist financing .

If a country is having an ineffective law against money laundering and terrorist financing FATF will instruct the country to modify the laws and allocate time duration.
 	The countries who are having ineffective laws are included in Grey list, where they stop monitoring those countries.
 	Currently Srilanka and Iraq are also in grey list. If a country stays in grey list it create a negative image across the globe. 
 	This will become the reason for increasing cost of doing business in the  country, reduce of foreign loans and investment etc.
 	If countries fail to modify the laws within the allocated duration the country will be listed under Black list.

In June 2018 Pakistan was placed in the grey list and given a 27 point action plan by FATF. This plan was reviewed in light of Pulwama Attack.

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Condemning the Pulwama attack, the Financial Action Task Force (FATF) decided to continue grey listing of Pakistan for its failure to stop funding of terror […]

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