The Financial Action Task Force (FATF) has retained kept Pakistan on its grey list and added its ally Turkey to the list, In a double blow for Islamabad which depended on Ankara's support to avoid entry into the blacklist earlier. Jordan and Mali were also added to the grey list. The announcements were made by FATF president Marcus Pleyer in a virtual press conference from Paris, at the end of FATF’s October plenary. The plenary is the highest decision-making body of the Paris- based terror-financing watchdog, and meets three times a year — in February, June and October.
PAKISTAN in greylist for 4 consecutive year
On Pakistan continuing to remain on the grey list, Pleyer said “there is no discussion of blacklisting” since it has already completed 30 out of the 34 action items that were given by the FATF earlier.
However, Pleyer said Pakistan has to “demonstrate” that it has taken action and effectively prosecuted UN-designated terrorists, After being repeatedly asked by the FATF to take action on terror outfits such as Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM).
According to the plenary’s report on Pakistan, the country has been asked to provide evidence that it
“Actively seeks to enhance the impact of sanctions beyond its jurisdiction by nominating additional individuals and entities for designation at the UN”. Pakistan is estimated to have lost over $ 30 billion in foreign investments since it was it was grey listed.
TURKEY join Pakistan in Greylist
non-profit organisations (NPOs).
Pleyer said the country has made a “high-level political commitment to work with the FATF to strengthen the effectiveness of its anti-money laundering and countering the financing of terrorism mechanism”. Turkey has been one of the countries supporting Pakistan, apart from China and Malaysia, thereby saving it from getting blacklisted.
WHAT ABOUT AFGHANISTAN?
This was the first FATF plenary since the Taliban took over Afghanistan in August. “In light of recent events in Afghanistan, the FATF, as the global standard setting body for anti-money laundering and counter-terrorist financing, Expresses its concern about the current and evolving money laundering and
terrorist financing risk environment in the country,” the body said in a statement issued especially on Afghanistan at the end of the plenary.
The FATF also asserted that the UNSCR 2593 (2021), which was adopted in August, had to be adhered to and That the “Afghan territory not be used to threaten or attack any country or to shelter or train terrorists, or to plan or to finance terrorist acts”.
TOTAL MEMBERS IN GREY LIST
Till the meeting, FATF has 22 countries under “grey listing”, including Albania, Morocco, Syria, South Sudan and Yemen. It has removed two – Botswana and Mauritius – and added three – Mali, Jordan and Turkey – making it a total of 23 countries on the Grey List. Only 2 countries have been placed on the 'Black List': Iran and North Korea.
WHAT IS FATF? Watch video to understand about FATF
The FATF is a global watchdog for money laundering and terror financing. "The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas."
The organisation was established by the G-7 Summit that was held in Paris in 1989 in response to mounting concern over money laundering. The G-7 Heads of State or Government and President of the EuropeanCommission convened the Task Force from-The G-7 member States, the European Commission and eight other countries after recognising the threat posed to the banking system and to financial institutions.
Originally comprising 16 members, the FATF expanded its membership to 28 members by 1992. By 2,000 it had 31 members and has since expanded to 39 members. The FATF Plenary, it's decision-making body, meets thrice a year.
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