FATF grey list – Pakistan to remain on it till February 2021
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This year, in February, we had read about Pakistan remaining on the FATF grey list till June 2020.
The Financial Action Task Force (FATF) is an intergovernmental organisation founded on the initiative of the G7 countries. It works to develop policies to stop money laundering and terrorism financing. You can read more about it here.
The FATF has two lists, which have countries that participate in activities such as money laundering (hiding illegal money) and funding terrorists. One list is called the “blacklist”, in which sanctions are imposed on the countries. The other is the “grey list”, in which the countries are not under sanction but they are under check by the FATF.
In its latest review, the FATF has said that Pakistan will stay on the “greylist” till February next year.
The FATF said that Pakistan has not done six of the 27 points it had to complete in order to be taken off the greylist. It is being given another chance to complete the remaining six items.
What does this mean for Pakistan?
Being on the “greylist” makes it difficult for Pakistan to get financial aid from international bodies. They include the International Monetary Fund (IMF), World Bank, Asian Development Bank (ADB) and the European Union.
To get out of the “grey list”, Pakistan needs 12 votes out of 39. The FATF currently has 39 members (including India). It also includes two regional organisations – the European Commission and the Gulf Cooperation Council.
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