FATF Grey List

FATF Grey List : Recently, the International Monetary Fund (IMF) confirmed that its Executive Board approved the release of $2.4 billion in funding to Pakistan without a formal vote, as the disbursement was part of an existing programme rather than a new loan.

o In a related move, India is preparing to send a dossier to the Financial Action Task Force (FATF) urging Pakistan’s re-inclusion in the ‘grey list’, citing its failure to implement the anti-terror laws it committed to in 2022.

• About FATF: An intergovernmental policy-making and standard-setting body focused on combating money laundering and terrorist financing.

o Objective: To establish global standards and promote national and international policies to counter financial crimes.

o Established: 1989 at the G7 Summit in Paris, initially to address money laundering; mandate expanded in 2001 to include terrorism financing.(Hq: Paris, France)

• Functions : Develops and promotes anti-money laundering (AML) and counter-terrorist financing (CFT) policies.

o Conducts mutual evaluations of member countries' compliance with FATF standards.

o Publishes reports on money laundering and terrorist financing trends.

• FATF Watchlists: Grey List: Countries with strategic deficiencies in AML/CFT efforts; placed under increased monitoring and warned of possible blacklisting.

o Black List: High-risk jurisdictions with serious AML/CFT failures; currently includes North Korea, Iran, and Myanmar.