With its plenary beginning on Monday Pakistan may remain in the grey list of the Financial Action Task Force (FATF) though the authorities assert that the country qualifies to be moved out on merit, Dawn reported. As per the report, background discussions with key officials and foreign diplomats suggest that the jury is divided with the authorities claiming sufficient progress to be confident of a positive outcome but some diplomats suggesting that even in the best case scenario Pakistan would remain in the increased monitoring list (grey list) until June. Ahead of the plenary, the FATF updated the overall performance of all countries. Based on this update, Pakistan has been shown improving compliance on two out of the 40 recommendations of the FATF on effectiveness of anti-money laundering and combating financing terror (AML/CFT) systems. It finds Pakistan s progress non-compliant on four counts, partially compliant on 25 counts and largely compliant on nine recommendations.
Pakistan is unlikely to exit the Financial Action Task Force's 'grey' list until June, despite its efforts to garner support from the member nations ahead of the plenary meeting of the glo
The Financial Action Task Force (FATF) is an inter-governmental body decision-making body. It was established in 1989 during the G7 Summit in Paris to develop policies against money laundering. It is a “policy-making body” which works to generate the political will to bring about national legislative and regulatory reforms in money laundering. It has also started dealing with virtual currencies. The FATF Secretariat is located in Paris.
b. The FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse. India became an Observer at FATF in 2006. Since then, it had been working towards full-fledged membership. On June 25, 2010 India was taken in as the 34th country member of FATF.