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    What Is The Financial Action Task Force

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    The Financial Action Task Force (FATF) is an inter-governmental organization that sets standards to combat money laundering, terrorist financing, and other threats. It places countries into white, grey, or black lists depending on their cooperation. Pakistan was placed on the grey list in 2018 and faced economic sanctions and difficulties obtaining international loans until demonstrating progress on 27 action plans by September 2019. While Pakistan made satisfactory progress, FATF decided in February 2020 to keep Pakistan on the grey list for another four months until June 2020 to continue reform efforts.

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    What Is The Financial Action Task Force

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    osaidahmed
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    The Financial Action Task Force (FATF) is an inter-governmental organization that sets standards to combat money laundering, terrorist financing, and other threats. It places countries into white, grey, or black lists depending on their cooperation. Pakistan was placed on the grey list in 2018 and faced economic sanctions and difficulties obtaining international loans until demonstrating progress on 27 action plans by September 2019. While Pakistan made satisfactory progress, FATF decided in February 2020 to keep Pakistan on the grey list for another four months until June 2020 to continue reform efforts.

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    The Financial Action Task Force (FATF) is an inter-governmental organization that sets standards to combat money laundering, terrorist financing, and other threats. It places countries into white, grey, or black lists depending on their cooperation. Pakistan was placed on the grey list in 2018 and faced economic sanctions and difficulties obtaining international loans until demonstrating progress on 27 action plans by September 2019. While Pakistan made satisfactory progress, FATF decided in February 2020 to keep Pakistan on the grey list for another four months until June 2020 to continue reform efforts.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    67 views2 pages

    What Is The Financial Action Task Force

    Uploaded by

    osaidahmed
    The Financial Action Task Force (FATF) is an inter-governmental organization that sets standards to combat money laundering, terrorist financing, and other threats. It places countries into white, grey, or black lists depending on their cooperation. Pakistan was placed on the grey list in 2018 and faced economic sanctions and difficulties obtaining international loans until demonstrating progress on 27 action plans by September 2019. While Pakistan made satisfactory progress, FATF decided in February 2020 to keep Pakistan on the grey list for another four months until June 2020 to continue reform efforts.

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    What Is the Financial Action Task Force (FATF)?

    FATF was originally started in 1989 in Paris to combat money laundering. It has
    been expanded to target the financing for weapons of mass destruction,
    corruption, and terrorist financing. It distribute its member countries into
    three categories:-

    1. White list: It is a safest zone, the countries which are part of this list possess
    the good reputation and fulfill all the requirements of FATF. They don’t find to
    be involved in money laundering, financing for weapons of mass destruction,
    corruption, and terrorist financing.

    2. Grey List: It is an alarming list. In which member countries are expected to


    prove themselves or the removal of the doubts of their involvement in the
    restricted activities. Member countries of this list has to go through from the
    Economic sanctions and problem in getting loans from international
    institutions (IMF, World Bank, ADB etc.) and countries.

    3. Black List: Only those countries are included in this list that FATF considers
    as undo-operative tax havens for terror funding. These countries are known as
    Non-Cooperative Countries or Territories (NCCTs).FATF began to blacklist the
    countries since 2000 which it judges to be non-cooperative in the global fight
    against money laundering and terror funding.

    What could be the impacts of FATF in Pakistan?


    Pakistan, was placed on the watch list (Grey List) until Jun-18 under 27 action
    plans till Sept-19, but the period was later extended to three more months. It
    could have an almost irreversible impact on the economy. Several big
    companies have shown interest to invest in the country (the auto and telecom
    sectors being a prime example of this). In case Pakistan is blacklisted, we might
    see these companies step back.
    What is the current position of Pakistan in FATF?

    The Pakistani delegation is led by Federal Minister for Economic Affairs Hammad Azhar,
    who is also accompanied by officials of the Ministry of Finance, the State Bank, and Federal
    Board of Revenue (FBR), in Paris. Discussions were held regarding the measures taken
    against convicting persons involved in terror financing.
    At the conclusion of its plenary meeting, the FATF stated Pakistan's progress or
    implementation on its recommendations as 'satisfactory'.FATF on Friday 21st Feb,
    decided to keep Pakistan on the greylist for another four months till June 2020.

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