Financial Action Task Force (FATF) Grey & Black List YouTube Lecture Handouts

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Financial Action Task Force (FATF): Grey & Black List: Criteria, Sanctions,Nations | Current Affairs

Title: Financial Action Task Force (FATF) Grey & Black List

FATF

  • Established in 1989
  • Result of G7 Summit
  • Set standards for legal regulatory and operational measures
  • combat money laundering, terrorist financing and other such threats to the integrity of the global financial system
  • Headquarters in Paris, France
  • In 2019,37 Full time members & 2 regional organizations
  • The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. 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.
  • With more than 200 countries and jurisdictions committed to implementing them. The FATF has developed the FATF Standards, which ensure a coordinated global response to prevent organised crime, corruption and terrorism. They help authorities go after the money of criminals dealing in illegal drugs, human trafficking and other crimes. The FATF also works to stop funding for weapons of mass destruction.
Financial Action Task Force

Black List

  • Non-Cooperative Countries or Territories (NCCTs)
  • support terror funding and money laundering activities.
  • Iran & North Korea (as per March 2021)

Grey List

  • Warning to the country that it might enter the blacklist if strict actions against terrorism and money laundering are not taken
  • Economic sanctions from IMF, World Bank, ADB.
  • Problem in getting loans from IMF, World Bank, ADB & other countries.
  • Reduction in International trade.
  • Might get Internationally boycott.
  • Pakistan was included in the grey list for the first time in 2012 and remained in it till 2015. On 29 June, 2018 FATF Grey listed Pakistan for the second time. The process began in February 2018 when FATF approved the nomination of Pakistan for monitoring under its International Cooperation Review Group (ICRG) commonly known as the โ€˜Grey listโ€™ .
  • India, USA and UK want that Pakistan should be included in the black list of FATF while China and Turkey are opposing this move.
  • Currently, Pakistan is in Grey list of FATF. Due to increasing pressure; Pakistan is striving to comply all the 27 FATF Targets. But as on October 2019; it could manage to comply with just 5 targets out of 2

Grey List Nations Dec 2020

Grey List Nations Dec 2020
Albania
Barbados
Botswana
Cambodia
Ghana
Jamaica
Mauritius
Myanmar (Burma)
Nicaragua
Pakistan
Panama
Syria
Uganda
Yemen
Zimbabwe

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