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Why in News?
- Pakistan is likely to be removed from the ‘grey list’ of the Financial Action Task Force
1.About
The Financial Action Task Force (FATF) was established by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering
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 Recommendations, or FATF Standards, which ensure a co-ordinated 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
The FATF reviews money laundering and terrorist financing techniques and continuously strengthens its standards to address new risks, such as the regulation of virtual assets, which have spread as cryptocurrencies gain popularity
2.About Grey list
Those countries which are not considered as the safe haven for supporting terror funding and money laundering; included in this list
The inclusion in this list is not as severe as blacklisted
Now the Grey list is a warning given to the country that it might come in Black list
If a country is unable to curb mushrooming of terror funding and money laundering; it is shifted from the grey list to black list by the FATF
