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- India has said that it expects Pakistan to implement steps agreed with the international Financial Action Task Force(FATF) to eliminate funding to terrorist groups operating from its soil.
- This statement came after FATF has warned Pakistan that the country could be blacklisted unless it fulfils an action plan against UN-designated terrorists operating in Pakistan by October,2019.
- Once a country is blacklisted,FATF calls on other countries to apply enhanced due diligence and counter measures, increasing the cost of doing business with the country and in some cases severing it altogether.
- As of now there are only two countries in the blacklist which are Iran and North Korea and seven on the grey list which includes countries such as Pakistan,Sri Lanka,Syria and Yemen.
- India along with other global powers has been pushing for blacklisting of Pakistan as the country has failed to meet international standards in combating financial crimes and terror financing.
- However,Pakistan has managed to avoid being placed on the FATF blacklist following support from China,Turkey and Malaysia.
- 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.
- FATF is a global task force which was formed in 1989 by different countries to combat money laundering, terrorist financing and other illegal activities related to international financial system.
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