‘Grey-listing’ nothing new: Pak. |ForumIAS

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News:

The global financial watchdog Financial Action Task Force( FATF) has placed Pakistan on the “grey list” for failing to curb terror financing.

Important facts:

2. The announcement comes a day after Pakistan submitted a Comprehensive 26 Action Plan to the FATF to chock funding of military groups.

3. The decision was taken at the FATF’s plenary session held in Paris.

4. However, there has been no formal announcement by the FATF so far.

5. In Feb it was agreed that an Action Plan would be negotiated between Pakistan and FATE members

6. Implications of this on Pakistan:

The placement on greylist could hurt Pakistan economy and its international standing.

7. Financial Action Task Force( FATF):

Is an inter-governmental body established in 1989.
It was established by a Group of Seven (G-7) Summit in Paris
It was established to combat money laundering, terror financing, and other related threats to the integrity of international financial system
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.