FATF grey list News

Greylisting by the Financial Action Task Force (FATF) is said to limit a country's access to international loans.

Russia Ukraine War: The big effect of this war going on continuously for 1 year is being seen. Apart from Russia and Ukraine, its effect is now being seen in other countries as well. If the situation does not become normal then more problems will emerge. Due to the suspension of Russia's membership by FATF, many problems may arise in front of Russia.

FATF President T Raja Kumar has made a big announcement against Russia during a two-day meeting in Paris. T Raja has barred Russia from taking part in its future projects. This step has been taken due to Russia's attack on Ukraine.

FATF (Financial Action Task Force) has imposed sanctions on Russia. Now, Russia will not be able to get the benefit of new projects related to FATF. Commenting on this, FATF President T Raja said that action has been taken against Russia due to its attack on Ukraine.

The FATF's jurisdictions under Increased Monitoring, often referred to as 'grey list', added the Democratic Republic of the Congo (DRC), Tanzania and Mozambique to the list.

Global watchdog Financial Action Task Force (FATF) has put Pakistan on its grey list Pakistan has suffered losses worth USD 38 billion due to FATF grey-listing

In a decision that was on expected lines, Pakistan continues to remain on the Financial Action Task Force's (FATF) grey list that will impact the economy of the country. Being on the grey list means, the country needs to make reforms in its financial system so that money is not used for terrorism. Pakistan was placed on the Paris based body's grey list in June 2018 and given an action plan to implement.

The Ministry of External Affairs (MEA) Spokesperson Anurag Srivastava during an online media briefing added that Pakistan continues to be a safe haven for terrorists.

Islamabad is yet to complete 13 out of 27 items suggested in its FATF Action Plan. Its progress on its Action Plan would be evaluated in the next meeting which will be held in October 2020.

FATF said that Pakistan must “identify, assess and understand its money laundering, terror financing risks, including transnational risks and risks associated with terrorist groups” operating from its soil.

The FATF currently has 35 members and two regional organisations, European Commission and Gulf Cooperation Council. North Korea and Iran are in the FATF blacklist.

The report identified some key routes of the terror financing and money laundering, saying that the Pakistan-Afghanistan and Pakistan-Iran borders were two key routes of such flows.

MEA has expressed hope that Pakistan will comply with the action plan suggested by the global watchdog.