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Pakistan to continue on FATF grey listing

Pakistan, the country will remain on the grey list of Financial Action Task Force (FATF) till June 2020 as it failed to comply with the 27-point action plan to control funding to terrorist groups. The international terror financing watchdog has warned Pakistan of stern action for its failure in combating money laundering and terror financing.The decision was taken after the conclusion of the February 16-21 group meetings and the plenary session of the FATF on Friday where another deadline of four months has been given to Pakistan to act against organisations involved in terror financing.

The FATF noted that Pakistan addressed only 14 of 27 action items given to it for controlling funding to terror groups like the Lashkar-e-Taiba and Jaish-e-Mohammad, responsible for series of attacks in India.The FATF strongly urges Pakistan to swiftly complete its full action plan by June 2020. Otherwise, should significant and sustainable progress especially in prosecuting and penalising TF (Terror Financing) not be made by the next Plenary, the FATF will take action, which could include the FATF calling on its members and urging all jurisdiction to advise their FIs (Financial Institutions) to give special attention to business relations and transactions with Pakistan,” according to a press statement issued after the plenary meeting.

Member of FATF.

As of June 2019, the FATF has 37 member countries and the policies outlined by the FATF are regarded with great respect and code. Beginning with its members, the FATF sees the progress of countries in achieving FATF recommendations; Reviews methods and counter measures for money laundering and terrorist funding; and, encourages the adoption and implementation of FATF Guidance globally. Nations deemed to be subject to evaluation by the FATF are supporting laws and regulations implemented by the FATF.

How the FATF Blacklists the Country.

In addition to the “Forty-Plus Nine” directives of the FATF, in 2000 the FATF released a list of “non-cooperative countries or territories” (NCCT), commonly referred to as the FATF blacklist. This was a list of 15 rules that, for one reason or another, accepted FATF members were uncooperative with other rights in international efforts against money laundering (and later, terrorism financing).

Typically, this lack of assistance provides foreign law to prove itself as unwillingness or incompetence (often, legal incompetence) that provides officers with information related to bank account and brokerage records, and customer classification and Subsidiary owner data related to such bank and brokerage accounts. , Shell company, and other financial vehicles are commonly used in money laundering.

As of October 2006, there are no non-cooperative countries and territories in the context of the NCCT initiative. However, the FATF has made significant improvements in standards and cooperation for countries with high risk and non-cooperative jurisdictions. The FATF issues updates to identify additional jurisdictions that circumvent the risks of money laundering / terrorist financing.

The results of the FATF blacklist have been significant, and have arguably proved more influential in global efforts against money laundering than FATF guidance. However, under international law, the FATF blacklist gave it no formal penalty the jurisdiction placed on the FATF blacklist is often found under severe financial pressure.The FATF studied 26 courts to examine its strength and willingness to cooperate with other countries in the global fight against money laundering. These surveys were mandatory in the report. Fifteen courts were marked as “non-cooperative countries or territories”, as the number of harmful practices identified in these courts was high.

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