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The Asia Pacific Group(APG) has conveyed to Pakistan that its action plans on terrorist groups were inadequate after it was grey-listed by the Financial Action Task Force(FATF) for terror financing.
APG has said that Pakistan has time until September,2019 to either comply with the demands made by FATF members or it could be blacklisted.The blacklisting will prevent institutions like IMF from financially supporting Pakistan which is anticipating a financial crisis.
In June 2018,FATF had decided to keep Pakistan on its grey list.It means downgrading of the country by institutions like IMF,World Bank,ADB,EU and also reduction in risk rating by Moody’s, Fitch and S&P.
The APG is the FATF-style regional body for the Asia-Pacific region.APG was founded in Bangkok,Thailand in 1997 as an autonomous regional anti-money laundering body by unanimous agreement among 13 original founding members.
The Asia Pacific Group currently consists of 41 members including India.It is focused on ensuring that its members effectively implement the international standards against money laundering,terrorist financing and proliferation financing related to weapons of mass destruction.
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 on the initiative of the G7.It is a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in various areas.The FATF Secretariat is housed at the OECD headquarters in Paris.
The objectives of the FATF are to (a) set standards and promote effective implementation of legal, regulatory and operational measures (b) for combating money laundering (c)terrorist financing and (d) other related threats to the integrity of the international financial system.
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